Australia: Headline inflation to rise by 0.4% q/q in Q4 2018 - ANZ

Dhwani Mehta FXStreet

Analysts at Australia and New Zealand Banking Group (ANZ) see the Australian consumer prices decelerating over the year in the fourth quarter of 2018 amid a sharp drop in fuel prices.

The Australian Q4 2018 CPI report is slated for release on January, 30th at 0030 GMT.

Key Quotes:

“Our forecast is for a 0.4% q/q rise in headline inflation in Q4, pushing the annual rate down to 1.6%.

A sharp fall in petrol prices is the largest negative for the headline figure, while retail price deflation continues to be a drag. Domestic air travel and tobacco prices will make positive contributions.

Core prices are expected to rise 0.5% q/q, which would leave the annual rate unchanged at 1.8%.

We see the risk to core inflation for the quarter as very much to the downside.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.