Yen makes gains following positive data
In addition to the slew of data from Japan Australia was first on the roster with the TD Securities Inflation index which rose by +0.2% in September and over the past 12 months by 3.0%. After having edged lower the underlying inflation rate appears to be creeping higher to rest just below the RBA’s upper tolerance band of 3.0% and this will cause the CB some concern.
While the RBA will be conducting its monetary policy meeting next week the market is not expecting a hike this time round though if the upward pressure on inflation remains the odds for a rate hike will shorten. The current credit concerns will probably restrain the CB on this occasion.
Japan issued a full economic release schedule as usual at month-end and on the whole the numbers make good reading for a change with just the unemployment rate […]