News & Analysis

US CPI; Retail Sales; USD drives AUD and Gold

Oct 15, 2017 | Daily Market Outlook

Key data releases coming up:

  12:30 AEDT – CNY CPI & PPI
  08:45 AEDT (TUE) – NZD CPI

US stocks closed higher on Friday – Dow Jones +30.71; S&P500 +2.24. Friday’s CPI data missed expectations – the market still sees a raise in Dec meeting. Retail sales came in stronger, driven by hurricane Irma and Harvey. Fed chair Yellen commented the economy is strong but inflation will be watched closely. The USD didn’t like Friday’s data as it lost ground. Gold and the AUDUSD finished at weekly highs helped by USD’s weakness. NAFTA continues to take a rough road with talks set to be extended.

European markets finished the week mixed – FTSE -20.80; DAX +8.98. The DAX looked set to close above 13,000 with sellers came in late session. The Euro finished the week lower and we saw strong falls to the NZD and AUD late Friday night. Draghi commented it will take time to raise inflation. The GBP meanwhile jumped on Friday and finished off high as Brexit continues to cause uncertainty. The cable finished 19 pips higher and added 191 pips for the week – the strongest week since September.

The local ASX200 had a strong Friday closing above 5800 – its best closing price since June. Buying has continued this morning and price is 26 points higher. The AUDUSD has started the week flat whilst USDJPY has opened flat after a 53 pip drop on Friday and added 20 pips this morning.

ASX200 – closes above 5800 for the first time since June this year and price is getting close to an upside breakout. This morning, buyers have opened price at 5833 and tested May levels.

Gold – added $10 on Friday, posted a strong end to the week. Last week, we saw a $27 gain. This morning price is currently consolidating below 4H at 1303.69 resistance level.

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