It was a mixed day yesterday across the financial markets as investors continued to digest the data out of the US on Friday with little in the way of fresh data being released. The Asian markets picked up where the US had left off on Friday night on a more positive note, but things tapered off as the day progressed and the US stock markets finished the day on the back foot. This theme was reflected across the currency markets with most pairs trading in familiar ranges, the UsdJpy drifted off in line with the equity markets and the Aussie and Cad hung onto recent gains in line with steady commodity prices.
Looking ahead to today’s trading and things should pick up as we progress through the day, first up in the Asian session we hear from central bankers on both sides of the Tasman with RBNZ Governor Spencer and RBA Deputy Governor Bullock both speaking, they are followed by the NAB Business Confidence numbers. Into the London session and it’s quiet in terms of fundamental data but we do have the annual Budget Release in the UK which as always can add some spice to the sterling markets.
The main focus of the day, once again comes in the New York session with the release of the US CPI data. Market expectation sits at 0.2% for the MoM and 2.2% for the YoY number. This will be watched almost as avidly as the NFP data on Friday with the market looking for stronger numbers to add to expectations of further rate hikes from the Fed.