Post-CPI Reversal Keeps AUD Under Pressure

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Forex Market 

AUD: USD Firming Caps CPI Bounce; AUD Holds Above Key Support
U.S. inflation came in slightly softer at the core level, but the USD ultimately regained strength as Wall Street remained under pressure. Initial post-CPI USD weakness quickly reversed, dragging high-beta currencies lower into the New York afternoon. AUD/USD traded within a tight range, briefly spiking on the CPI release before falling back into the Sydney open. USD/JPY surged to fresh multi-month highs despite verbal concern from Japan’s Finance Minister.

General Market

Wall Street

  • Dow Jones: -0.7% → 49,219
  • S&P 500: -0.4% → 6,952
  • Nasdaq: -0.4% → 23,645
  • VIX: +6.7% → 16.14

Asia-Pacific

  • ASX 200: +0.6% → 8,809 (Materials +2%, Financials +0.7%)
  • Nikkei: +3.1% → 53,549
  • Shanghai Comp: -0.6% → 4,139

Europe

  • DAX: +0.1% → 25,421
  • FTSE: 0.0% → 10,137
  • CAC: -0.1% → 8,347

 

Headlines to Watch

United States

  • Retail sales expected to rebound after October’s flat reading
  • PPI releases (Oct–Nov) to provide early signals for core PCE inflation
  • Fed’s Beige Book due tomorrow for insight into business conditions

China

  • December export data expected to show +3% YoY growth, supported by improving new export orders and an extra working day

Japan

  • Finance Minister Katayama reiterated concern over yen depreciation, but markets remain skeptical of near-term intervention amid political uncertainty

Australia / FX

  • AUD/USD holding above 0.6650 support but struggling to regain upside beyond 0.6750 as USD remains firm
Currency PairMid-market Rate
AUD/USD0.6684
AUD/NZD1.1645
AUD/JPY106.41
AUD/CNY4.6643
AUD/EUR0.5740
AUD/GBP0.4977
AUD/HKD5.2143

 

 

 

 

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