The Australian dollar pared the decline from the October high (1.0410) as stronger price growth in the $1T economy sapped bets for additional monetary support, but the high-yielding currency may struggle to hold its ground going into November as interest rate expectations remain tilted to the downside. As consumer prices expand at the fastest pace since the fourth-quarter of 2011, the larger-than-expected uptick in price growth may push the Reserve Bank of Australia to the sidelines, and the central bank may revert back a wait-and-see approach ahead of 2013 as the headline reading for inflation climbs back within the 2%-3% target range.
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