Sunday, September 12, 2010

AUD/USD Gaps Up 37 Pips in Early Sunday Trading

The initial 37 pip AUD/USD gap up on the open of Sunday forex trading today seems to be in line with bullish Chinese economic data. Some traders are wary though of a possible rate hike to curb inflation. It remains to be seen how policy makers will react, e.g. if they consider the 3.5% CPI (inflation rate) in August to be somewhat of a one-time outlier due to food inflation caused by floods/crop destruction or if they foresee a greater inflationary trend.