The Australian Dollar tumbled about 0.8% versus the US Dollar after Aussie inflation data disappointed market players. The Australian Bureau of Statistics reported that 3rd quarter CPI unexpectedly slowed, both quarter-over-quarter and year-over-year, to 0.6% and 1.8%, respectively, below expectations of 0.8% and 2.0%. On a quarterly basis, CPI was still above the last quarter results, while on an annual basis, inflation slowed from 1.9%. That news overwhelmingly dimmed hopes for a rate hike from the Reserve Bank of Australia in the coming months.
As reported at 11:05 am (BST) in London, the AUD/USD was trading at $0.7705, down 0.91%; the pair had earlier hit a trough of $0.76960 while the session high is at $0.77840. The AUD/JPY is also down at 87.953 Yen, a loss of 0.69%; the pair has ranged from a low of 87.760 Yen to a peak of 88.666 Yen.
USD/JPY Higher on Fed Appointment Hopes
In the US, the greenback traded close to a 3-month peak versus the Japanese Yen on media reports that US Republican Senators seemed to be a more hawkish Fed chief, specifically, John Taylor, an economic from Stanford University. Yellen’s term expires in February 2018, and odds-maker’s are pushing Taylor as the front runner in the race to take over the Federal Reserve Bank. At a Senate luncheon yesterday, President Trump had said that Yellen’s reappointment was also one being considered but many still expect Trump to allow Yellen, a well-known dove, to leave the job when her appointment concludes. The USD/JPY was trading at 114.191 Yen, a gain of 0.25%.
