Increase in stocks of Australian Dollar after CPI shock
The Australian dollar rose despite the softer-than-expected inflation data shocking on the downside. The rates of instant cash loans such as payday loans, payday cash advance, payday advance loans and cash advance loan will surely be affected as well by this inflation data shocking on the downside.
This weaker-than-expected inflation numbers led some analysts to predict that the bank may not rose at all in 2011. The Reserve Bank of Australia has been tipped to remain on hold.
According to the Australian Bureau of Statistics, the Australian consumer price index have increased with 0.4 per cent in the fourth quarter of 2010 from the third quarter and increased with 2.7 per cent from the earlier year. The annual core inflation hike was the slowest since 2000. The Australian dollar switched hands at US99.57c up from US98.80c few days ago.
Paul Bloxham, an HSBC economist, said that they still think this inflation will be picking up due to the floods and tight labor market and a medium-term tightening bias will still remain. On the other hand, Ben Potter, IG Markets research analyst said that the stock market had been boosted by the CPI figures specifically the retailers on the reduced likelihood of a near-term increase in interest rates and this includes instant cash loans. It is said to be positive for the market in terms of discretionary spending.
A progress of 42c to $27.18 has been seen in the retail section under Woolworths while Myer firmed 4c to $.69 and David Jones picked up 1c to $4.87. Global miner BHP Billiton rose 13c at $45.05 in the resources sector and Rio Tinto increased 40c at $85.51. While despite saying its oil and gas production came in above guidance in 2010, Oil Search decreased 2c to $6.75 at 7.66 million barrels of oil equivalent which has been followed by a better-than-expected performance from fields in Papua New Guinea. National Australia Bank rose 17c higher at $24.78, Westpac increased 2c to $22.82 and ANZ fell 5c to $23.61 in the banking sector. And after announcing it had $199 billion in funds under administration at December 31, the Commonwealth Bank gained 28c to $52.60 or a 2 per cent in the December quarter.
