AUD – CPI Due today
Gold – Remaining near lows
Tuesday was a quiet day in the market, with no key releases other than the minutes of the RBA monetary policy meeting. As is now a common them the RBA said that further depreciation in the AUD is likely and necessary, however the RBA did reference the fact that depreciation against the USD has been significant but less so against other currencies.
The Aussie dollar had a positive day, gaining about half a cent against the greenback as the minutes identified relative strength in the local economy saying there is still spare capacity whilst economic output has risen 2.3% over the year.
Staying with Australia, quarterly CPI is to be releases at 04:30 with a forecast of 0.8% significantly higher than recent months. The last quarter to see a forecast that high was Q1 2014, when expectations were missed. Last month was 0.2%, which beat expectations.
Gold remains near lows at the $1100 mark, and having threatened to move up to $10 higher on the day, ultimately settled right back where it started. Having surprised a lot of people with a the drop, some watchers expected people to climb in looking for value, but there is no real reason to buy – Gold is often seen as a safe haven but with little growth from inflation and the relative strength of the USD, there appears less obvious reason to buy gold.