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21 Apr 2014
AUD/USD keeps small range, big risk events ahead
FXStreet (Bali) - AUD/USD trades confined in a small range at the open on Monday, with most financial centers around the Asian Pacific region closed for business on Easter.
Last week, the Australian Dollar fell over 0.6% amid better US data, which despite encouraging more risk taking strategies, failed to encourage bulls to return to the market.
The recent rise in US bond yields (10y at 2.72% from 2.65%) gave the USD a late week ahead of risk events for the pair, the most notable being Wednesday's Aus Q1 CPI on Wednesday, which will receive plenty of coverage after the unexpectedly high Q4 CPI, which caught by surprise even the RBA.
It has been widely reported that the cheaper Aussie has been a key factor to import inflation into the country, a reason which could help understand why the RBA has recently toned down its verbal campaign towards the value of the Aussie.
On Wednesday, the HSBC Flash China PMI is also due, an event that will garner plenty of attention.
Last week, the Australian Dollar fell over 0.6% amid better US data, which despite encouraging more risk taking strategies, failed to encourage bulls to return to the market.
The recent rise in US bond yields (10y at 2.72% from 2.65%) gave the USD a late week ahead of risk events for the pair, the most notable being Wednesday's Aus Q1 CPI on Wednesday, which will receive plenty of coverage after the unexpectedly high Q4 CPI, which caught by surprise even the RBA.
It has been widely reported that the cheaper Aussie has been a key factor to import inflation into the country, a reason which could help understand why the RBA has recently toned down its verbal campaign towards the value of the Aussie.
On Wednesday, the HSBC Flash China PMI is also due, an event that will garner plenty of attention.