This morning also saw the release of Portuguese and Irish flash inflation for January. In Portugal, the headline HICP estimate rose to 2.6% Y/Y (vs 1.9% prior) after 4 consecutive months of deceleration prior. In Ireland, flash HICP was 2.7% Y/Y (vs 3.2% prior).
The acceleration of the Portuguese headline rate was a result of "price increases in electricity and the ending of the VAT exemption for several essential food items" according to the press release.
Find more articles and bullets on these widgets:
Aussie 10yr futures remain in an uptrend and the contract traded to new highs of 96.110 this week. This takes out key resistance at the 96.050 level, opening levels seen higher at the 2.0% upper Bollinger Band of 96.126. The recent recovery has tipped prices north of the 100-dma - reinforcing the current bullish theme. Key support lies below at 95.390 as well as 95.275. Weakness through here could mark the conclusion of the bounce off the bear trigger at 94.965.
The USDCAD trend outlook remains bearish and price traded lower on Wednesday. The pair has recently cleared a bear trigger at 1.3480, the Dec 4 low. Furthermore, all key short-term retracement points have been breached. These developments reinforce a bearish theme and maintain the price sequence of lower lows. Sights are on 1.3093, the Jul 14 low and a key support. Resistance to watch is 1.3391, the 20-day EMA.
Bullish trend conditions in AUDUSD remain intact and this week’s continuation higher reinforces current conditions. The climb maintains the bullish price sequence of higher highs and higher lows. Sights are on 0.6900, the Jun 16 high and the next key key resistance. On the downside, key short-term support is unchanged at 0.6526, the Dec 7 low. Initial firm support is at 0.6714, the 20-day EMA. Short-term weakness is considered corrective.