Foreign exchange – Aussie principally regular after commerce costs knowledge exhibits export features

© Reuters.  Aussie flat after trade prices© Reuters. Aussie flat after trade prices

Investing.com – The Aussie traded steady in Asia on Thursday after trade-related prices data that is overtaken by figures released this week on consumer prices.

Australia reported the third quarter index rose 3.5% in the third quarter, handily beating the 2.0% gain seen and the index dipped 1.0%, more than the 0.7% decline seen.

The export-price gain likely signals a better terms-of-trade outlook and may ease RBA concern about the exchange rate. On Wednesday, Australia reported third quarter CPI rose 0.7%, beating the 0.5% rise expected quarter-on-quarter and set a 1.3% pace year-on-year, also beating expectations, though underlying inflation was weaker than expected.

traded flat at 0.7651 after the data and changed hands at 104.57, up 0.10%. traded at 1.2233, down 0.10%.

Earlier in New Zealand, the September trade balance came in at a deficit of NZ$ 1.436 billion , and at a gap of NZ$ 3.4 billion, both wider than expected.

traded at 0.7156, up 0.04%, after the data.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.01% to 98.60.

Overnight, the dollar was broadly lower on Thursday after hitting near nine-month highs in the previous session on the back of expectations for a U.S. rate hike, while sterling regained ground as expectations for a rate cut next week diminished.

The index has rallied so far this month as hawkish remarks by Fed officials in recent weeks cemented expectations for a rate hike before the year’s end. Expectations for higher interest rates typically boost the dollar by making the currency more attractive to yield-seeking investors.

The Fed’s next meeting is in November, but a rate hike ahead of the presidential election is seen as unlikely.

Investors are currently pricing a 78.3% chance of a rate hike at the Fed’s December meeting; according to federal funds futures tracked Investing.com’s Fed Rate Monitor Tool.
Investors were turning their attention to data on U.S. third quarter growth due for release on Friday for further cues.

Sterling fell on Tuesday to the lowest level since the flash-crash earlier this month, before rebounding after Bank of England Governor Mark Carney said the bank could not ignore the pound’s “fairly substantial” drop since the June 23 Brexit vote.

The comments were seen as an indication that the BoE will leave rates unchanged at its meeting next week.

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