The Aussie dollar continues to drift silently and markets appeared utterly indifferent as the Aussie dollar continued to grind it out near the key technical level. A notable lack of buying momentum in the Aussie signals that further downside could be on the cards the next time market flows set their sights on the US dollar.
U.S. consumer prices were unchanged in November, held back by a sharp decline in the price of gasoline, but underlying inflation pressures remained firm amid rising rents and healthcare costs.
But with oil prices tumbling, financial market conditions tightening and economic growth slowing, some economists believe the Fed could settle for fewer rate increases in 2019.
Meanwhile, the majority of the focus is paid to European politics with optimism over Italy’s budget and markets pricing in UK PM May surviving the leadership vote with sterling picking up the most of the flow.