Australia’s share market was bolstering after several international and overseas gains help pull the market to its two-week high, while the Aussie falls shortly after because of weaker-than-expected inflation numbers. The Australian dollar struck its lowest in almost a week and with the US’ President Protectionism, the currency continues to struggle.
Weaker Quarter Data Breaks AUSD
The Aussie falls on a huge deficit today from $0.7516 to $0.7511 in a matter of minutes after the data from the March quarter were released. The inflation data failed to hit several economists’ expectation of 0.06% only hitting the 0.05% mark. Yearly inflation was at 2.1% on the report, a bit shy of 2.2% increase economists expected.
The Aussie currently sits at an almost week long of stumble, and is still under immense pressure from President Trump’s growing concern, especially after going on the tariffs on Canadian lumber that enter North America. According to Westpac’s senior market strategist Imre Speizer, “That being the case, who’s next, what countries and what products might be next. And so pretty much all the commodity currencies, New Zealand and the South American ones included got hurt overnight,”
Australian Share Market Hits 2-Week High
The Australian share market has been doing a great job in the past two weeks, the recent run it had earlier in Wednesday trading puts them on a clear path for its fourth consecutive positive session. Overseas news, most specifically the French election which had its first stage triggered the increase the market currently soaks in. According to CMC Market chief market analysts Ric Spooner, “The French election result has released a risk aversion handbrake for world equity markets,”
Earlier market hours figures are at; S7P/ASX 200 index were increased by 0.85% at 49.9 points to 5,912.7, while the wider All Ordinaries index proceeded to have an increase of around 0.78% at 46.1 points to 5,946.8. Spooner also added that; “In the case of US markets, Macron’s likely election has allowed a positive response to what is now shaping up as a strong quarterly profit reporting season. With around 30 percent of companies in the S&P 500 index having reported March quarter results, there is a strong bias to positive surprises compared to already strong consensus expectations.”
Australian banks rode the same
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