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Australian headline inflation printed at 7.3% y/y. This was higher than the expected 7.2% y/y and more than the last months 6.9% y/y. After two months of declines, food prices pushed higher. Poor weather was much to blame and is largely reflected in the increase in fruit and vegetable prices. Motor fuel was another larger contributor up 5.6% m/m (it was also up 7% m/m for October).
The hourly chart is bullish. EURUSD’s EMAs have crossed up (black ellipse), as has its momentum based stochastic (aqua ellipse). A movement by stochastic to the 80+ area (blue arrow) will denote an underlying positive momentum. Holding in this area will suggest that the shorter-term traders are aligning with the daily bullish participants.
The pair stays on the offensive after Friday’s rally sparked by the US Jobs report, while forming a potentially important technical pattern
Friday’s job report showed a slowdown in job growth and a moderation in wage inflation. In response, the US 10-year real rate declined, with the greenback following.
Yesterday, the USDOLLAR pushed into its bullish channel between its upper blue and red bands (blue rectangle). The RSI also crossed into its bullish area above 50 (green rectangle). The greenback rallied on the strong ADP data, which pushed the US 2-year yields up around 11bps
The pair rebounds from Tuesday’s slump, as markets gear up for a series of economic data and the accounts of the Fed’s last monetary policy decision
The pair shows resilience as the UK economy contracted in Q3, but remains in tough spot after the recent central bank blitz, awaiting key releases from the US
The pair is looking for direction around key technical levels after last week’s central bank blitz, as markets await Friday’s US PCE inflation update
The pair finds some support after Tuesday’s nearly 4% slump, due to the surprise policy tweak by the Bank of Japan
The BoJ surprised markets by shifting their JGB defense from 0.25% to the 0.5% level. In response, the USDJPY declined by 2.6% to 133.27 as the JGB yield rose to a high of 0.432%. The central bank has used yield curve control since 2016 to manage interest rates at relatively low levels. The JPN225 also dropped as markets pondered the higher rates that companies would now pay on their debt,…
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