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Australian Dollar Clings on After US CPI, Be Wary of USD/JPY Intervention as Yen Falls
The sentiment-linked Australian Dollar was whipsawed by investors on Thursday as markets reacted sporadically to September’s US inflation report. Overall, the data surprised to the upside, as expected. Headline CPI clocked in at 8.2% y/y versus 8.1% anticipated. The arguably more important core gauge crossed the wires at 6.6% y/y versus 6.5% seen. The largest component of core – shelter - was a key component in driving September’s print. It continues to show that the housing market is driving underlying price pressures as food and energy relatively slow down. This is not a good sign for the Federal Reserve, ... (full story)