RSS ForexLive Asia-Pacific FX news wrap: AUD dipped after inflation data

Currently reading:
 RSS ForexLive Asia-Pacific FX news wrap: AUD dipped after inflation data

Status
Not open for further replies.

Crax Bot

Staff member
Administrator
Amateur
LV
0
Joined
Nov 5, 2021
Threads
10,348
Likes
1,923
Credits
33,567©
Cash
0$

Chinese equities were slammed lower again today. I’m not sure that is news anymore? China’s State Planner, the National Development and Reform Commission (NDRC) announced piecemeal stimulus, which failed to ignite investor support. Meanwhile, the Ministry of Finance (MOFCOM) railed against the latest U.S. restrictions on Chinese companies. As I post the Shanghai Composite and Hong Kong’s Hang Seng are both down around 1.5%.

On shore yuan weakened, against the USD, to levels last seen in September 2023.

In data from the region the focus was on Australian inflation figures for November 2024. I posted here:


on why the monthly CPI report is not viewed as nearly as important as the quarterly data (we get this next on January 29). Nevertheless, it’s a more timely update. While headline inflation came in a little higher than expected the core measure, Trimmed Mean, was notably lower than in October (3.2% vs. 3.5%), providing some encouragement for those looking for a Reserve Bank of Australia interest rate cut. AUD/USD and bond yields dipped after the data. AUD/USD has since recovered. Australia’s benchmark equity index, S&P/ASX 200, rose.

As an aside, we also had job vacancy data out from Australia today, which showed the first rise in vacancies since May 2022. Australia’s labour market has been resilient. This is another sign of that. It did get noticed today but seemed to be glossed over in the excitement over the potential for an RBA rate cut. The RBA may well eye jobs data as a reason to delay rate cuts a little longer. The RBA next meet on February 17 and 18.

This article was written by Eamonn Sheridan at www.forexlive.com.
 
Status
Not open for further replies.
Tips

Similar threads

Top Bottom