Aussie Inflation Shock

Morning Report: 06.30 London

• The Australian dollar is the big mover this morning after quarterly CPI came in negative for the first time since 2009. Australian dollar pairs have sunk by over 1.5% on the news, with the AUD/JPY reversing recent gains.

• Meanwhile, the dollar is looking to recover yesterday’s losses after Apple posted unexpectedly slow revenue growth. The USD/JPY is so far unchanged ahead of the FOMC statement.

Coming up today:

• Coming up today, we have preliminary UK GDP at 09.30.

• This is followed by US pending home sales at 15.00, crude oil inventories follow at 15.30.

• The big ticket is the FOMC statement at 19.00 with no change expected.

Trade Idea:

• The GBP/AUD has risen sharply over the last 5 days, not just this morning.

The pound is generally showing some relative strength, which could point to further upside from here.

A good way to play this is a HIGHER trade predicting that the GBP/AUD will close above 1.92000 in 14 days for a potential return of 128%.

                          
                                                         

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