We could see a bit of volatility again today with local CPI figures due at 11.30am. Last time we saw local economic data was last week when employment data was released to the market. AUD/USD following that data release fell from the low 0.77's to the low 0.76's almost overnight showing that the Aussie is prone to some dramatic moves when the data isn't overly positive. We're expecting to see a slight uptick in quarterly CPI to 0.5% which would be the best reading this year and on par with what we saw in the same quarter of 2015. Obviously Turnbull and the RBA will be hoping to see a stronger number this and should we see a bumper expect the Aussie to bounce, likely back above 0.7700 vs the Greenback.
Other than that, not a great deal going on. Iron ore prices are continuing to recover despite incessent calls from perma-bears while European and U.S equities succumbed to a bit of profit taking.
DATA RELEASES TODAY:
AUD - CPI at 11.30am
AUD EXCHANGE RATES:
AUD/USD – 0.7621
AUD/GBP – 0.6247
AUD/EUR – 0.7003
AUD/NZD – 1.0643
AUD/JPY – 79.43
***Above rates are indicative wholesale rates and intended as a guide only***
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