Tag Archives: inflation

Soft inflations figure to keep jigsaw mats stable

The soft inflation figures release today should keep the price of jigsaw mats stable.

Consumer prices were softer-than-expected in the first three months of this year, lowering expectations that an interest rate hike could be on the cards later this year.

The headline inflation for the first-quarter of this year rose by 0.6 per cent to take the annual rate to 2.9 per cent. The figures were lower than analysts’ consensus forecasts and keeps the annual growth in inflation within the Reserve Bank’s target band of 2 to 3 per cent.

Although expectation that interest rates would be stable pushed the dollar down, it wasn’t by so much that it could push up the price of imported goods. With jigsaw mats being manufactured overseas this is a good sign.

AUD still holding up despite pressure

The AUD failed to break to the upside on Tuesday, as the RBA minutes simply reiterated their neutral stance and echoed last month’s statement. The AUD is still “too high historically”, but not enough was said to effect the markets in either direction in Australia trading hours. Overnight the AUD fell vs the USD, EURO and other majors, in anticipation of today’s major releases out of China, and the fact that China’s money supply grew at the slowest pace on record. China GDP numbers are due today and are forecast to drop to 7.4%, anything lower could hurt the AUD. This time 12 months ago the AUD began a dramatic fall that lasted until June, the short-term will be key to the medium term AUD levels.