CPI data of China Friday failed to support the recent Aussie dollar rally, which re-commenced on Thursday in light of the Australian economy posting strong Employment Figures. The Chinese CPI and PPI data released caused a minor correction to the strength of the AUD across most of the major currencies, with the currency quickly losing about 0.25%. With that said, the Aussie is still trading today in the region of a 2014 high against the USD, GBP and EUR. It is however, still struggling to find its feet against the New Zealand Dollar though.
Against the CAD, the Aussie is currently trading in the vicinity of a 10 month high. The Bank of Canada announces their rate decision on Wednesday and expectations are that it will be held at 1.0%. The CAD has been strong against the USD in the past few weeks however, hitting a 7 week high last week.
The Advance Retail Sales figures out of the US are the most notable economic data in terms of adding volatility to today’s currency market, but there is much more significant economic data being released globally and locally tomorrow. CPI figures out of the UK will be released tomorrow evening, followed by CPI figures out of the US a few hours later. Following the release the US Consumer Price Index, the Head of the Federal Reserve, Janet Yellen will speak at the Financial Markets Conference. German Economic Sentiment and Euro-Zone Trade Balance figures are also likely to impact upon the Euro tomorrow.
Locally, our attention tomorrow will be given to the release of the Minutes from the RBA’s April meeting.