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11 Jun 2025

Crosscurrents

• Mixed signals. Positive US CPI offset by lack of US/China trade progress. S&P500 dipped, as did bond yields. AUD & NZD also eased back.• Tariff impacts. Some signs of tariffs in US inflation. But other factors working the opposite way. Will US inflation re-accelerate down the track?• Data flow. US producer prices & jobless claims tonight. Next week US Fed meets, China data is due, & the AU jobs report is released. Global Trends Contrasting US economic and trade tariff news generated a few intra-session market swings overnight. On the more positive front US CPI came in a little...

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Dollar Slips and Markets Rip Higher As Soft US Inflation Data Bolsters Rate Cut Bets

The US dollar is trading with a modestly weaker bias after fresh evidence that price pressures are moderating in the world’s largest economy reinforced expectations that the Federal Reserve could begin cutting interest rates as early as October. Underlying inflation eased by more than expected last month. Data released by the Bureau of Labor Statistics this morning showed core consumer prices, which exclude food and energy, climbing just 0.1 percent in May from a month earlier, slowing from the 0.2-percent pace recorded in April, and undershooting market expectations for a steady print. Core prices rose 2.8 percent on a year-over-year...

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