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    NYLON HANDOVER: US inflation ticks higher

    US inflation rose 0.2% on the month, slightly above 0.1% forecast whilst remaining stuck at 0% on the year. Whilst this is not enough to expect FED to raise rates sooner, it was enough to create short covering for the USD and send it higher across the board.





    OVERNIGHT

    • - US inflation rose 0.2% on the month, slightly above 0.1% forecast whilst remaining stuck at 0% on the year. Whilst this is not enough to expect FED to raise rates sooner, it was enough to create short covering for the USD and send it higher across the board.
    • - Euro crosses finished down, under pressure for the stronger Greenback and US inflation data.
    • - VIX (and related volatility indices) remain at their lowest levels since mid-August to show investors are not overly concerned with global macro themes.
    • - Gold broke to a 16 week high but momentum is waning below $1192. We still expect a move towards $1200 if it can stay above $1169 support.
    • - Global stocks rose on the session but concerns are appearing for the luxury goods market
    • Burberry shares fell sharply lower after it warned of weak sales in China, highlighting concerns for the luxury goods markets. It closed the session 8% down.

                                                             
    TODAY IN ASIA:

    • - NZD inflation data for Q3 is expected to remain steady at 0.3% y/y. A rise in inflation could send NZD lower as traders would assume further currency jawboning from RBNZ and / or lower interest rates ahead.
    • - No news scheduled for Australia, however AUD remains buoyant aft unemployment remained at 6.2% yesterday.

     


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