Erste News trading results

During the trading week from April 22 to April 26, Erste News was trading on the AUD/USD on the publication of inflation data in Australia and USD/JPY on data on the US GDP.

On April 24, AU CPI – TRIMMED MEAN [Q/Q] came out, showing a significant slowdown in inflation in Australia. Australia’s consumer price index has slowed to zero, updating a low of the last three years.

Fig. 1. Consumer Price Index (CPI) in Australia (q)

 

Technical factors, the resumption of the downtrend and increased pressure on commodity currencies from the US dollar were an additional driver to reduce this pair.

 

Fig. 2. AUD/USD chart

 

The US GDP Annualized was published on April 26, which showed significant growth in the US GDP in the first quarter, confirming market expectations for growth in the US economy. On the other hand, the US GDP deflator has slowed to its lowest levels in the last three years, heightening concerns about a slowdown in the US inflation.

Fig. 3.  U.S. GDP deflator (q/q) chart

 

On ambiguous GDP data, the USD/JPY pair showed multidirectional dynamics, aided by corrective sentiment in the market. Thus, with the opening of trading on Friday, the US currency remained limited to the lateral dynamics and attempts to correct at the closing of positions before the weekend and the expectations of the US data. Also it worth noting the general restraint of the pair and the growing risks that support the Japanese yen.

Fig. 4. USD/JPY chart

Hanzenko Anton