The Kiwi Dollar has again traded a fairly narrow range, holding up well despite continued market risk aversion on coronavirus concerns. The Euro fell to a 6 week low as ECB President Lagarde struck a slightly more dovish tone than many had expected. Earlier the ECB kept interest rates steady as expected. The Australia Dollar has given back most of the gains made yesterday after better than expected employment data.
AUD Spikes After Jobs Data
The chances of a RBA rate cut next month reduced as Australian employment data came in above expectations yesterday. The Aussie jumped by almost half a cent as employment rose by 29,000 in December vs expectations of 10,000, while the unemployment rate fell to 5.1% vs 5.2% expected. The AUD gains have been short lived with the currency now back at yesterdays opening levels.
The Day Ahead
Local focus will be on this mornings Q4 inflation data with markets expecting a CPI reading of 0.4% for the quarter with annual growth at 1.8%. Further afield we have manufacturing data out of the US, UK, and Euro Zone tonight.
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