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The AUD registered gains against the USD on Tuesday, even though inflation in the US edged, spurring hawkish remarks by Fed Chair Jerome Powell. The AUD/USD trades at 0.6624
FED Chair Jerome Powell comments after releasing the PPI said that, although he anticipates inflation to continue declining, he is less confident about the disinflation outlook than he was previously. Powell also mentioned that the GDP is expected to grow by 2%, a positive forecast to the strength of the labor market.
on the US front Bureau of Labor Statistics revealed the PPI rose by 0.5% MoM in April, above the 0.3% consensus and March’s -0.1% contraction. Core PPI also jumped by 0.5% MoM, above projections of 0.2%.
locally, the Aussie’s economic calendar will feature the release of the latest Wage Price Index which is expected to remain at 0.9% QoQ and 4.2% YoY.
Economic data to watch out for.
• CN – May-15. 1-Yr Medium-Term Lending Facilities Volume
• CN – May-15. 1-Yr Medium-Term Lending Facility Rate
• AU – Q1. Wage Price Index q/q
• EU – ECB’s Villeroy speaks
• EU – Q1. Employment q/q and EU – Q1. GDP SA q/q
• EU – Mar. Industrial Production SA m/m
• US – Apr. CPI m/m
• US – Apr. Retails Sales Advance m/m
• US – Fed’s Kashkari Speaks in
Mid market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6637 |
| AUD/NZD | 1.0972 |
| AUD/JPY | 103.84 |
| AUD/CNY | 4.8029 |
| AUD/EUR | 0.6132 |
| AUD/GBP | 0.5271 |
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