FXStreet (Bali) - Sean Callow, FX Strategist at Westpac, notes that Westpac is looking for a slightly above-consensus CPI reading out of Australia today.

Key Quotes

"Much rests on Australia’s Q2 CPI data (11:30am Syd/9:30am Sing/HK), with markets pricing an aggressive -12bp from the RBA cash rate by Dec, -16bp by Mar 2015. Westpac is looking for a slightly above-consensus reading, headline 0.6% q/q, 3.2% y/y (median 0.5, 3.0) and an average of 0.7% q/q, 2.8% y/y on the core measures (median 0.6-0.7, 2.7). The 2.8% y/y on core we expect should sum up the RBA’s outlook – after the shock 0.9% surge in Q4 was followed by a muted 0.5% in Q1, inflation is causing no alarm but is still in the top half of the target band. A reading around our expectations should cause pricing for a rate cut to be reduced but by no means eliminated and boost AUD/USD perhaps 25-30 pips."

"Asia’s data calendar is limited to Singapore Jun CPI and Taiwan Jun industrial production. In the UK there will be close attention on the minutes from the BoE MPC’s July meeting for any hints on the first rate hike. Canada releases May retail sales but the US calendar is quiet."

Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  6. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  7. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  8. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  9. Investing

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  10. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
COMPANIES IN THIS ARTICLE
Trading Center