The Australian Dollar tumbled about 0.8% versus the US Dollar after Aussie inflation data disappointed market players. The Australian Bureau of Statistics reported that 3rd quarter CPI unexpectedly slowed, both quarter-over-quarter and year-over-year, to 0.6% and 1.8%, respectively, below expectations of 0.8% and 2.0%. On a quarterly basis, CPI was still above the last quarter results, while on an annual basis, inflation slowed from 1.9%. That news overwhelmingly dimmed hopes for a rate hike from the Reserve Bank of Australia in the coming months.
As reported at 11:05 am (BST) in London, the AUD/USD was trading at $0.7705, down 0.91%; the pair had earlier hit a trough of $0.76960 while the session high is at $0.77840. The AUD/JPY is also down at 87.953 Yen, a loss of 0.69%; the pair has ranged from a low of 87.760 Yen to a peak of 88.666 Yen.
USD/JPY Higher on Fed Appointment Hopes
In the US, the greenback traded close to a 3-month peak versus the Japanese Yen on media reports that US Republican Senators seemed to be a more hawkish Fed chief, specifically, John Taylor, an economic from Stanford University. Yellen’s term expires in February 2018, and oddsmaker’s are pushing Taylor as the front runner in the race to take over the Federal Reserve Bank. At a Senate luncheon yesterday, President Trump had said that Yellen’s reappointment was also one being considered but many still expect Trump to allow Yellen, a well-known dove, to leave the job when her appointment concludes. The USD/JPY was trading at 114.191 Yen, a gain of 0.25%.