Wednesday’s economic docket proved to be quite a busy one; Australian CPIs came in above expected figures and in line with previous readings and we are still looking onto Q2 UK GDP, US Durable Goods Orders and today’s highlight will be this evening when the Fed communicate their rate decision.
After this morning’s CPI numbers from Australia, the Aussie lost ground to the USD after briefly peaking to 0.7565 but is now trading at the price of 0.7479. The US dollar index (DXY) is in positive this morning after a softer week start in a 5-week uptrend. Expectations for a rate hike in today’s policy meeting conclusion are not high, but the option nevertheless is still valid as markets see the Fed choosing to wait a bit more.
Ahead of the UK data the GBP was mildly lower across most of the majors, but the gains seen against the JPY and the Aussie more than compensated for the rest of the losses.
This morning the Yen is giving up the gains made throughout Monday and Tuesday, as the BoJ is largely expected to deliver more stimulus later this week. The gains seen earlier this week were mostly based on disappointment that the stimulus plan to be delivered by the BoJ may not be as vast as markets initially expected – but apart from the size markets still expect some form of stimulus out of the BoJ.
