The US$ is back on a firm note today, after yesterday’s mild correction (DXY; 97.12, +0.43%), following the stronger than expected inflation data. US headline CPI slowed to 1.6% yy in January, down from 1.9% yy but beat expectation of 1.5% yy while the core CPI was unchanged at 2.2% yy, beating expectation of 2.1% yy. Al the majors have come under downside pressure, with the Euro looking heavy and currently sitting just above its recent lows, while the Aud and the Kiwi were unable to carry on with yesterday’s gains and both look a little heavy heading into this morning’s Asian session. In other markets, US stocks are mildly higher, as is WTI, +1.6%, in hoping for a positive outcome from the trade negotiations between the US/China.
Looking ahead, the day gets off to a busy start with the NZ Food Price Index, Japan Q4 GDP, Australian Consumer Inflation Expectation and the January China Trade Balance (exp +$33.10 bio; Exports -3.2%, Imports -10.00%) all due. From EU we have the German January Industrial Production, Preliminary GDP (exp 0.1%, 0.7%yy), Q4 EU Unemployment(exp 0.2%, 1.2%yy), EU Q4 GDP(exp 0.2%, 1.2%yy), while from the US comes the December Retail Sales (exp Ex-Autos 0.1%, Control Group +0.4%), January PPI (exp 0.1%mm, 1.4%qq), November Business Inventories (exp 0.3%) and the weekly Jobless Claims,
Economic data highlights will include:
Thur: NZ Food Price Index, Japan Q4 GDP, Australian Consumer Inflation Expectation, China Trade Balance, German Preliminary GDP, EU Unemployment, GDP, US Retail Sales, PPI, Business Inventories
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