- Australian CPI rose 0.4% in Q4 with weighted mean +0.5%
- Australian Treasurer predicts inflation spike next quarter
- NZ rates unlikely to change on Thursday
- Irish finance bill set for ratification
- BOJ raises fiscal year GDP forecast
- Regional stockmarkets +0.6% on average
- Gold slips to $1334/oz
Most of the early volatility was in the AUD after the release of the softer-than-expected CPI numbers. AUD/USD quickly fell from .9975 to .9935 before steadying. There were also some significant flows seen in the EUR/AUD. Ranges: AUD/USD .9928/82
EUR/USD got a boost from the EUR/AUD flows and surged quickly after a quiet start. Barriers at 1.3700 were enough to dissuade any over zealous buyers but the EUR/USD maintains it’s bid tone. Ranges: EUR/USD 1.3629/85, EUR/CHF 1.2937/70
EUR/GBP was of more interest today than the cable as the market eyed strong trendline resistance at .8555. The line held for the second successive session but London will no doubt have another go before the GDP data. Ranges: Cable 1.5967/1.6017, EUR/GBP .8527/47
USD/JPY has had it’s usual 30 pip range between 82.35/63
