The Australian dollar notched its top gains in more than two weeks against the world's reserve currency on Tuesday prior to the government of the South Pacific nation releasing inflation data, according to Bloomberg.
The Aussie rose against each of its top 16 counterpart currencies as speculation gained that the Reserve Bank of Australia will implement an interest rate hike. The RBA forecast inflation to perform consistently with its target during the next two years.
"Given such firm market expectations, it is a bit hard to square the relaxed stance in both money and currency markets," states a client note authored by strategist Todd Elmer with Citigroup, according to The Wall Street Journal. "Should the economy continue to show its recent momentum, the close to flat pricing on interest rates through the end of the year may be too low."
The Aussie pushed ahead roughly 0.4 percent against the greenback, registering its top climb since earlier in April.
The Consumer Price Index is likely to have climbed 0.8 percent, according to a poll administered by The Wall Street Journal.
The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.
Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.
© 2021 StoneX Group Inc. All Rights Reserved