PPI Eases, Aussie Jobs Disappoint – What It Means for USD & AUD

Mixed Signals from US PPI and Australia’s Jobs Data – Here’s My Take:

Today I analyse two key releases: US Producer Price Index (PPI) and Australia’s unemployment data.

Yesterday’s US PPI came in flat at 0.0% month-on-month, below expectations of 0.2%. Core PPI also printed 0.0%, signalling a softer outlook for producer inflation. This suggests that recent consumer price stickiness may be temporary, giving the Fed more room for rate cuts later this year, potentially around 75 basis points across Q3 and Q4.

Now, Australia’s labor market is showing weakness. Unemployment jumped to 4.3%, well above expectations of 4.1%, while employment change came in at just +2,000 jobs versus 21,000 expected. These numbers are extremely disappointing and reinforce my bearish bias on AUD/USD. The pair is trading near 0.6485, and I expect further downside toward 0.6450, possibly even 0.6400 if momentum holds.

On the USD index (DXY), we’ve pulled back slightly after nine straight bullish sessions, but I see this as a short-term correction.

Gold spiked briefly to $3,380 on PPI but retraced quickly to the $3,345 area. For now, I’m neutral on gold until we see a breakout from its current range.

The takeaway? Strong USD, weak AUD, and continued opportunities on major FX pairs as rate expectations evolve.

Register here for the next webinar: https://acy.com/en/education/webinars/

Join Luca's Telegram Trading Feed: https://t.me/+bkfmaA76P2VlMTQ1

Catch up with the latest news and market analysis here: https://acy.com/en/market-news

This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplies by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.