AUD/JPY Should Hold Gains Offshore

Forex News AUD/JPY's ascent to an 9-month high helped by thin liquidity and better tone in stocks, but positive open to European session means pair should hold their gains, says EasyForex trader Francisco Solar. Notes thin U.S. data calendar means AUD/USD will be flow driven, with good support at 0.9680. "You'd probably see it struggling to make new records above 0.9800 cents today." Now 0.9754. AUD/JPY now 104.145.

Read more.....

All Eyes Now On Aussie 2Q CPI

Forex News Weaker than expected 2Q PPI means "much now depends" on 2Q CPI Wednesday, but correlation between both sets of data isn't necessarily close, says RBC Senior Strategist Sue Trinh; "high rents, healthcare, petrol costs and food will keep CPI elevated." Adds RBA remains on hold, closely watching impact from soaring terms of trade. Notes strong AUD helping in price rise battle. AUD/USD now 0.9748, from 0.9728 post data.

Read more.....

Aussie Demand-Driven Inflation May Have Peaked

Forex News Tentative signs now emerging that demand-driven inflation in Australia may have peaked, with slight downward risk to 2Q CPI, says Westpac Chief Economist Bill Evans; "it appears the demand driven upward push to inflation has peaked out." Notes softer than forecast 2Q PPI came on back of higher petrol costs not feeding through, coupled with weaker than expected construction costs. "It would appear we are starting to see some evidence that the slowing in the housing market in particular is starting to put some downward pressure on inflation."

Read more.....

Aussie PPI Sign Inflation Not As Bad As Feared

Forex News Australian 2Q PPI underscores bigger picture that inflation is not as bad as some fear, leaving RBA on track to cut rates from early 2009, says NAB Chief Economist Alan Oster. "I'd broadly say this is consistent with the view that maybe inflation is not as bad as some people may have feared." Notes price pressures remain, driven by commodity prices, but says in short-term "market may have gotten a bit ahead of itself." Adds doesn't have much correlation with CPI due Wednesday.

Read more.....