Forex news

#1
An increase in the Australian Conference Board leading index from 0.1% to 0.3% during the month of May added some underlying support to the Aussie dollar in Asia yesterday as it held firm above the 90 cent handle etching out gains to enter offshore exchange at 0.9025. The AUD/USD moved above 0.9050 overnight before sellers stepped in to take profit on the move ahead of today's critical Australian second quarter Consumer Price Index report. Although headline inflation is expected to come in well above the 3% mark the market will closely scrutinise the RBA's preferred measures, the trimmed and weighted means which strip the result of the more volatile components and concentrate on core inflation. Analysts are expecting an increase in inflation and as a consequence have been pricing in a rate rise next week when the central bank meets which does leave the Aussie dollar open to some downside below this morning's open at 0.9010 should the result come in below forecasts for an annual rate of 3.4% (headline) or 3% (trimmed mean).
 

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