Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Benign CPI causes AUD to slide


Benign CPI causes AUD to slide

By Tim Waterer (Senior Trader, CMC Markets)

The CPI data today may not have gone so far as to determine the exact course and timeline of interest rates over coming months however it has saved the RBA the headache of balancing slowing growth with stubborn price pressures. Today’s low CPI print when viewed in the context of the soft labour market result last week makes the case for an RBA rate cut very justifiable, but it falls short of making potential monetary easing in February a slam dunk case. The improving global outlook perhaps eliminates some of the urgency for the RBA to cut rates again however the benign CPI undoubtedly provided more opportunity to ease if the central bank so desires.

As expected, the Australian Dollar did not take too kindly to the low CPI print with the currency losing around a third of a cent on the increased chance of forthcoming RBA rate cuts. The AUDUSD had been above 1.0560, before slipping below 1.0530. It was far from a significant sell-off in the AUD today however and the improving global outlook and rising commodity prices allowed the AUD to absorb the low inflation reading. Despite the CPI data today, 1.0620 remains a viable short term target for the AUD and much of this is down to sentiment for 2013 continuing its upward trajectory.

The ASX200 made another play for the 4800 level today courtesy of positive performances by key stocks in the materials and financial sectors. Again it was a solid if not spectacular day on the market which is a theme that seems to be re-occurring so far in 2013. BHP results were warmly received by traders however this was offset by RIO weakness and this seemed to constrain the local bourse from having a solid breakout above 4800 today. But overall it was a case of ‘steady as she goes’ with the ASX200 again edging higher.
ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news