Australia’s 5-year Treasury bond yields refresh 29-month high post inflation data

Anil Panchal FXStreet

With the latest Aussie inflation figures pushing the Reserve Bank of Australia (RBA) towards a rate hike, Australia’s 5-year Treasury yields jumped to the highest since May 2019 following the data, at 1.35% by the press time.

That said, the headline Consumer Price Index (CPI) remains unchanged at 0.8% QoQ, matching forecasts while easing below 3.1% market consensus to 3.0% on YoY. On the contrary, the Reserve Bank of Australia's (RBA) trimmed-mean CPI jumped past 1.8% expected and 1.6% prior readouts to 2.1% YoY whereas the quarterly readings also crossed the 0.5% forecast and the previous read to 0.7%.

It should, however, be noted that RBA Governor Philip Lowe earlier cited the need to wait for the Aussie wage numbers to confirm the reflation fears, which in turn probes AUD/USD bulls by the press time.

Also testing the quote’s upside is the 15-year high of US inflation expectations and the market’s cautious mood ahead of the US GDP.

Read: AUD/USD spikes to 0.7535 on strong Australia inflation, bulls eye 0.7565 key hurdle

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD treads water above 1.1850 amid thin trading

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day.

GBP/USD flat lines as traders await key UK and US macro data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.365 in Monday's European trading. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold sticks to intraday losses; lacks follow-through

Gold remains depressed through the early European session on Monday, though it has managed to rebound from the daily trough and currently trades around the $5,000 psychological mark. Moreover, a combination of supporting factors warrants some caution for aggressive bearish traders, and before positioning for deeper losses.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.