This morning’s Producer Price Index for the June quarter is expected to show an increase of 1.5% compared with 1% last quarter. The main interest in the PPI will be as a general guide in predicting what Wednesday’s CPI might do, as that could have a major impact on the RBA’s next decision.
Heavy selling is expected on the approach to .9000 with stops just above there. Buying interest is expected to emerge close to the previous resistance levels at .8870/80.
