Hot CPI Dents RBA Cut Hopes

AUD

AUD opens mixed against all the majors following strong CPI y/y data. The ASX followed suit climbing +0.8%, as materials and consumer discretionary sectors led gains at +1.8% and +1.2%. Asian equities finished the day higher with the Nikkei +1.9%, Shenzhen +0.6% and Hang Seng +0.1%. Yesterday we had Australian CPI y/y for October coming in higher than expected at 3.8% (Forecasted at 3.6%., no other data releases were out yesterday. Today is rather quiet as well with the only data being Australian Private Capital Expenditure q/q forecasted at 0.6% up from previous 0.2%. No data out from China to finish the week.
 

USD

AUDUSD opens up 0.71% from yesterday at 0.6517. A fourth consecutive positive day on Wall St. saw the Nasdaq trading +1%, and both the S&P 500 and the Dow Jones +0.9% late in the North American session and ahead of the Thanksgiving break. Yesterday we saw Unemployment Claims at 216k down from 222k, as well as Core Durable Goods Orders m/m and Durable Goods Orders m/m at 0.6% up from 0.3% and 0.5% down from 3.0% though both released 30 days late due to Government shutdown. Nothing out for the rest of the week with the Thanksgiving holiday to close off the week.
 

EUR

AUDEUR opens up at 0.5621, the DAX and CAC both closed up at 1.1% and 0.9%. A very quiet Wednesday for the Eurozone, today we will have M3 Money Supply y/y and Private Loans y/y expected at 2.8% and 2.6%. Tomorrow will have Prelim CPI m/m out of Germany, France and Italy as well as German Retail Sales and Import Prices.
 

GBP

AUDGBP opens up slightly at 0.4924, the FTSE finished up 0.9%. Over night released was the Autumn Forecast Statement which is released annually and provides an updated economic outlook and previews the government's budget for the coming year. A lot of the statement was focused on Increases on certain taxes and how reliant the budget is on taxes.
 

NZD

AUDNZD opens down at 1.1428 following the RBNZ Cash Rate decision with them cutting to 2.25% as expected down from 2.50%. The main driver for the cut was the larger than expected contraction in second-quarter GDP being released at -0.9% q/q, also possibility of that being the last cut of the cycle. This Morning we saw Core Retail Sales q/q and Retail Sales q/q released at 1.2% and 1.9%.