Trade Desk Thoughts - Australian Producer Price Index
Trade Desk Thoughts - Australian Producer Price Index
Australian Producer Price Index Actual 2.0%, Expected 0.9%, Previous 1.0%
Release Explanation: Producers tend to pass on higher costs to consumers as higher retail prices, thus the PPI is valuable as an early indicator of inflation. Simply put, inflation reflects a decline in the purchasing power of a country’s currency, where each dollar buys fewer goods and services. The report also gives insight into how higher prices from raw materials flow through intermediaries toward the final product.
Trade Desk Thoughts: Producer prices in Australia increased by 2.0 percent for the third quarter of 2008 reports the Australian Bureau of Statistics. Main price increases were seen in building construction (1.8%), electricity, gas and water (7.4%), and dairy product manufacturing (5.5%). The producer prices have increased 5.6 percent from the begining of the year.
Forex Technical Reaction: The Australian dollar has bounced off the neutral LFB pivot point and is still trading below resistance seen last friday.
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