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23 Apr 2014
Aussie inflation numbers temper hike expectations, Germany posts strong flash PMIs
FXStreet (London) - The Aussie dollar took a big hit overnight after weaker-than-expected inflation numbers. Year-on-year first quarter consumer price index-measured inflation came in at 2.9 percent, below the 3.2 percent consensus expectation and up from 2.7 percent in the final quarter of 2013. The softer-than-expected inflation numbers are seen as taking off the pressure for the Reserve Bank of Australia to move to hike rates from their current 2.5 percent level. AUD/USD remains down 0.97 percent so far at USD0.9274.
RBNZ hike expectations
Consensus expectations are for the Reserve Bank of New Zealand to move to hike its base rate from its current 2.75 percent level to 3 percent. The central bank is set to be the first of the major central banks to hike rates this year, with forecasts that it will continue to hike rates through 2014.
Further weak French data
French market and services flash PMI numbers released this morning disappointed expectations. According to Markit, French private sector output rose for a second consecutive month in April, although the rate of expansion eased to a marginal pace, posting 50.5, down from 51.8 in March and below consensus expectations of a 51.9 print. Weaker rates of output growth were recorded in both the service and manufacturing sectors during April. Services activity rose only fractionally, while manufacturers indicated a modest increase in production.
Flash German PMIs beat expectations
German numbers beat expectations, with the Markit survey reporting solid activity growth at the start of the second quarter from German private sector companies, with the composite Index rising from 54.3 in March to 56.3. The latest reading was the second-highest in nearly three years and stretched the current period of growth to 12 months.
RBNZ hike expectations
Consensus expectations are for the Reserve Bank of New Zealand to move to hike its base rate from its current 2.75 percent level to 3 percent. The central bank is set to be the first of the major central banks to hike rates this year, with forecasts that it will continue to hike rates through 2014.
Further weak French data
French market and services flash PMI numbers released this morning disappointed expectations. According to Markit, French private sector output rose for a second consecutive month in April, although the rate of expansion eased to a marginal pace, posting 50.5, down from 51.8 in March and below consensus expectations of a 51.9 print. Weaker rates of output growth were recorded in both the service and manufacturing sectors during April. Services activity rose only fractionally, while manufacturers indicated a modest increase in production.
Flash German PMIs beat expectations
German numbers beat expectations, with the Markit survey reporting solid activity growth at the start of the second quarter from German private sector companies, with the composite Index rising from 54.3 in March to 56.3. The latest reading was the second-highest in nearly three years and stretched the current period of growth to 12 months.