Australian CPI data released a few hours ago showed the annualized rate, which was expected to drop to 2.3%, remained at 2.4%.
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Australian inflation data released earlier showed the month-on-month CPI increasing by 0.9% while an increase of 0.8% was expected. This kept the annualized rate higher than expected, at 2.4% rather than 2.3%. This produced a rise in the Australian Dollar, as it reduces expectations of rate cuts over the near term a bit. The Aussie has been the strongest major currency today.
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Asian stock markets are closing mostly higher, continuing the weak rally, with the Nikkei 225 Index trading at the highest price seen since the first days of this month of April. President Trump announced that “we’re going to make a fair deal with China on trade”, which might be helping.
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In results from yesterday’s Canadian federal election, the Liberals will be just 3 seats short and will easily form a coalition with the NDP or another party or parties. The Canadian Dollar appears to have strengthened a bit and this may be helped by the certainty of the result. One noteworthy point: the gap between the Liberals and Conservatives was less than 2% in the popular vote, so the result is actually closer than it looks.
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Markets are generally quiet.
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Bitcoin saw a firm recovery last week, in line with the general recoveries shown by most risk-on assets but has been unable to break above the key resistance level at $95,038 which continues to hold today. However, there are signs that this level has been eroded, and that the price is on the brink of a decisive bullish breakout. The longer this level survives tests from below, the more pivotal and tradable it will be come when we finally see either a breakout or a decisive bearish reversal.
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US JOLTS Job Openings data released yesterday was worse than expected, with only 7.19 million jobs.
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There will be a release later today of German Preliminary CPI numbers which might affect the Euro.
