August 16, 2012
Finally! A green candle! After three consecutive days of losses, the Aussie was able to buckle a poor start and eventually ended the day with a 9-pip win to close at 1.0504. Will AUD/USD now resume its uptrend?
Earlier this morning, the MI inflation expectations report was released. Apparently, consumers expect price to rise by just 2.4% over the next year, down from the 3.3% pace in June.
With inflation expectations tapering down, this gives the RBA more leeway to cut rates down the road. Take note that baseline rates now stand at 3.50%, but rates fell as low as 3.00% during the height of the recession in 2009.
No other biggies on tap for today, so we may not see any huge moves in the market. In any case, always stay on your toes and read up on my other commentaries for potential market movers!
"The only cable I watch is the pound baby."