The commodity linked Australian economy received a boost in early trading as a slowing inflation rate provided hope for an interest rate cut as early as next month. Consumer prices inflation increased by 0.1% in the first three months of 2012, far below analyst expectations of a 0.6% increase. The annual growth rate also beat analyst expectations who forecast 2.1%, whilst the figure came in at 1.6%.
At present, the Australian interest rate stands at 4.25%, having been increased to aid in fighting a quickly rising inflation. However, weaker global economic growth and reduced demand by China have combined to ease the rate of inflation and Gross Domestic Product rose by only 0.4% in the last quarter, after analysts expected a 0.08% increase.
Many Australian consumers have become more cautious about spending, jobs and earning power as the Australian Dollar stayed strong, reducing the costs of imports such as fuel and food. China’s appetite for natural resources like iron ore, coal and copper has contributed to Australia being able to weather much of the global economic worries and have helped the Australian economy in a time when plenty of developed economies are feeling the effects of the global economic downturn and entered recession.
The Australian Dollar was feeling the effects of profit taking in the US Dollar and precious metals in early market trading – down 0.59% in the AUD/USD pairing, valued at 1.0259 before rallying to 1.0301, down 0.19% as European markets opened.
This afternoon much of the investor focus will be on what is coming from North America. At 1.30pm core retail sales figures are published in Canada, with a wealth of data being coming from the US later on in the afternoon. Increased trader volumes mean good volatility to trade in with plenty of profit opportunities for the Binary Trader today.
* * * * * * * * * *
Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments.