The Australian dollar gained today after China’s consumer price inflation accelerated last month more than was predicted by analysts. Experts remain skeptical about the ability of the Aussie to rise in the near term.
China’s Consumer Price Index rose 3.6 percent in March from a year ago. That’s compared to the median forecast of 3.3 percent and the previous reading of 3.2 percent. The increase of consumer prices isn’t entirely good for the Australian currency, though, as it may cause China’s central bank to reduce the scope of stimulating measures.
As for Australia itself, the fundamentals there aren’t very positive for the Aussie (as the Australian currency is often nicknamed). Last week, the Reserve Bank of Australia hurt the currency, suggesting that an interest rate cut is possible. This week is rich with macroeconomic report, including the very important employment report. The outlook for this report is mixed. The report is expected to show employment growth in March, following the decline in February, but at the same time it may show an increase of the unemployment rate.
AUD/USD was flat at 1.0302 as of 23:04 GMT today after it earlier fell from 1.0296 to 1.0257. AUD/JPY rose from 83.90 to 84.01, following the drop to 83.47. At the same time, EUR/AUD rebounded to 1.2721 after the drop from 1.2718 to 1.2663.
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