Well in what was a very volatile week to end April, we saw the AUD lose 3 cents on a very weak CPI at – 0.2 %. This number was not at all expected and leaves the Central bank to do only one thing and that was to ease interest rates by .25 basis points.
Official Australian cash rate stands at 1.75%.
The AUD has suffered as a result moving from .7710 to .7470 earlier today.
This move sends a message to international investors that yield isn’t everything for an investor. However the US Economic numbers continue to show ‘slow’ spending numbers. The key level for the AUD this week is .7420.
The US has its employment data out on Friday and it’s expected to be 200,000 plus, while commodity prices hold support levels, the Australian economy will continue to look attractive. USD/SGD continues to reject higher levels and is holding under 1.4000.
The Currency Guru