Dollar falling for a maximum of 9 months, Australian dlr shines on Cpi data
Aug 8 2020, 09:44
LONDON (Reuters) - The Australian dollar is buoyant by the reading of inflation better than expected, which re-ignites expectations for a rise in interest rates in the short term while the dollar loses ground. ** Australian consumer prices rebounded beyond last quarter's expectations and annual core per cent inflation rose for the first time in over a year. ** The Australian dollar leaps to 0.7709 US dollars from 0.7645 seen before the data. ** The index on the dollar fell to 98,606 after pushing 99.119 in the last session, at most from the first of February, in the wake of expectations that the Fed will proceed to a rise in rates within the year, a scenario that according to FedWatch 78% chance of occurring. ** "With the meeting of the Fed and the presidential elections at the gates it would not be surprising to see the dollar move more neutrally in the next days", analysts of Credit Agricole (PA: CAGR) reasoned in a statement. "Historically, the greenback tends to depreciate about a week or two before the presidential elections," they add. ** The euro rises 0.2% to 1.0907 against the dollar, after falling to a low of around nine months by 1.0848 yesterday. On the yen, the greenback floats around 104.14, slightly down intraday but not very far from the maximum of about three months of 104.87 yen seen yesterday.