Aussie's better step it up....
The Australian dollar experience a brief sell off after the country’s producer price index turned out weaker than expected in Q4.
On quarterly basis, PPI declined by 0.4%, despite expectations for another 0.1% increase.
Meanwhile annual PPI contracted by 1.5%, further than forecasts for a 0.9% pullback and reversing a 0.2% increase in Q3.
The results suggest a downside bias in the Consumer Price Index to be released on Tuesday, a development which will weighed on the Australian Dollar.
The consensus is currently calling for a 0.4% quarterly gain to add to the prior 1.0% rise, and a 2.0% annual increase, faster than the previous 1.3% pickup.
In the immediate aftermath of the announcement, AUD/USD briefly declined 24 pips to 0.9023 before rebounding to pre-release levels.
The pair last traded higher by 61 pips at 0.9068 after trading in a range of 0.9015 to 0.9075 today. Short term support is at 0.8983 and 0.8939. Resistance is found at 0.9142 and 0.9155.
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