International trouble spots continue to grab the headlines, as nervous investors keep an eye on events Ukraine and the Middle East. Last week’s downing of a Malaysian Airlines jet, apparently by proRussian separatists, has seriously frayed relations between Europe and the US with Russia, which have already been strained since the latter annexed Crimea.
AUD/USD has posted gains on Tuesday, as the pair has pushed above the 0.94 line in the North American session. The Aussie has moved higher as US CPI posted a weak gain of 0.1% last month. Today’s other key release is Existing Home Sales, which will be released later in the day. In Australia, RBA Governor Glenn Stevens spoke at an event in Sydney. We’ll get a look at Australian CPI early on Wednesday.
US inflation numbers continue to struggle. Core CPI posted a paltry gain of 0.1%, shy of the estimate of 0.1%. The key index has looked in anemic in 2014, with its highest gain this year at just 0.3%. CPI gained 0.3% last month, matching the forecast. The markets are expecting better news on the housing front, as Existing Home Sales is expected to show strong gains in June.