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US CPI (inflation) data released yesterday showed inflation slightly lower than expected, boosting US stock markets and risk-on sentiment.
- Yesterday's release of US CPI (inflation) data was slightly better than expected. The annualized rate was expected to remain unchanged from last month at 2.4%, but it ticked a fraction lower to 2.3%. Both Core CPI and regular CPI were expected to show a month-on-month increase of 0.3% but the actual rates were 0.2%. This gave a boost to risk sentiment and was expressed in the US stock market, helped by President Trump's announcement on a visit to Saudi Arabia of a huge deal where Saudi Arabia will purchase $142 billion worth of military equipment from US manufacturers and invest billions more (possibly as much as $600 billion) in the US economy. This pushed US equities to extend yesterday's gains significantly, with both the NASDAQ 100 Index and the S&P 500 Index rising firmly - each index is now trading well above its 200-day moving average, after strong and significant recoveries from the "Trump tariff lows" of a few weeks ago. The outlook is looking more bullish for US stock markets, and Asian stocks are also mostly advancing today.
- Australian Wage Price Index data released yesterday showed wage inflation running slightly hotter than expected, with wages rising by 0.9% over the previous quarter when an increase of 0.8% was predicted. This suggests Australian inflationary pressures are still slightly on the hot side, and that may have helped boost the Aussie during the Asian session, with the AUD/USD currency pair slightly higher.
- German and Japanese inflation released yesterday came in exactly as expected.
- The Forex market had a relatively quiet Asian session, with little price movement. Yesterday saw many currencies make gains against the US Dollar.
- There will be a release much later of Australian Unemployment rate data.