Australian CPI data released earlier today showed an unexpectedly large increase, boosting the Australian Dollar in early trading.
Australian CPI (inflation) data released a few hours ago showed an unexpectedly large increase, with the annualized rate rising strongly from 1.9% to 2.8%. The general expectation was for an increase to only 2.3%. The hot inflation data is seen as potentially vindicating the Reserve Bank of Australia's recent caution in holding off on rate cuts lately. This surprise is a hawkish tilt and has sent the Australian Dollar higher to be the strongest major currency today, but the effect is not especially strong.
President Trump has fired Fed Board Member Lisa Cook for cause, citing alleged mortgage fraud. Board Member Cook has vowed to legally challenge the firing, which will likely now depend on whether the allegation can be substantiated - the President has the power to fire any Board Member for cause, but this has not happened since 1913. Some analysts hold that the effect of this may be to shake confidence in the ability of the Fed to maintain a fully independent policy, which paradoxically might increase stock market jitters, although there is little sign of that so far.
- The S&P 500 Index
is trading very close to its record high in off-hours markets, with a major potential resistant round number of 4,500 just ahead of that. It will be interesting to see what happens today when the US stock market opens.
The Forex market remains relatively quiet, which is typical for August. Since today's Tokyo open, the strongest major currency has been the Australian Dollar, while the Swiss Franc has been the weakest.