July 25, 2012
And the slump continues! After a brief pause earlier in the day, the Aussie came crashing lower during the New York session as the sell-off continued. AUD/USD closed 27 pips lower to finish at 1.0252.
Earlier today, CPI figures were released and showed that quarterly inflation stood at 0.5%, which is lower than the projected 0.6% figure, but slightly higher than the previous quarter's number of 0.1%
You might be thinking, “Well, inflation remains low… isn’t that a good thing?”
It isn’t if you’re the Australian dollar! This just means that the RBA still has more room to cut rates further if it really wants to boost the economy. This of course, doesn’t bode well for the local currency.
Nothing due for the rest of the week, so most likely the Aussie will surf to the beat of risk sentiment over the next couple of days.
Last edited by PipDiddy; 07-25-2012 at 01:45 AM.
"The only cable I watch is the pound baby."