Aussie rises after inflation data
The Australian dollar rose against most major rivals after positive data showed higher than expected inflation in the first quarter.
Australia’s consumer prices rose 2.4% y/y in March, above estimates of 2.3%, and same as the previous reading in February.
On a quarterly basis, consumer prices rose 0.9% in the first quarter, up from 0.2 % in the fourth quarter of last year.
The odds of a 0.25% interest rate cut in May by the Reserve Bank of Australia fell to 95%.
On trading, AUD/USD rose 0.4% as of 19:50 GMT to 0.6405.
Loonie
The Canadian dollar rose 0.4% as of 19:50 GMT against its US counterpart to 0.7254.
Earlier data showed Canada’s GDP contracted by 0.2% in February.
US Dollar
The dollar index rose 0.3% as of 19:52 GMT to 99.4, with a session-high at 99.6, and a low at 99.1.
Earlier data showed US GDP shrank 0.3% y/y in the first quarter, while analysts expected a growth of 0.4%.
According to the ADP survey, the US private sector added just 62 thousand new jobs in April, below expectations of 120 thousand.
Trump commented on the GDP contraction data and blamed Biden’s heritage, asserting that his economic recovery that he promised will take time.
He asserted that tariffs will have their impact soon with corporations already shifting their production to the US in record numbers.
US crude stocks fall more than expected
The Energy Information Administration reported a drop of 2.7 million barrels in US crude stocks last week to 440.4 million barrels, while analysts only expected a drop of 0.1 million barrels.
Gasoline stocks fell by 4 million barrelsto 225.5 million barrels, while distillate stocks rose 0.9 million barrels to 107.8 million barrels.
Wall Street declines after unexpected GDP contraction
US stock indices tumbled on Wednesday after earlier data showed the US economy shrank unexpectedly in the first quarter.
Earlier data showed US GDP shrank 0.3% y/y in the first quarter, while analysts expected a growth of 0.4%.
According to the ADP survey, the US private sector added just 62 thousand new jobs in April, below expectations of 120 thousand.
Trump commented on the GDP contraction data and blamed Biden’s heritage, asserting that his economic recovery that he promised will take time.
He asserted that tariffs will have their impact soon with corporations already shifting their production to the US in record numbers.
On trading, Dow Jones fell 1.1% as of 15:44 GMT to 40102 points, while S&P 500 shed 1.4%, or 77 points to 5483 points, as NASDAQ dropped 1.8%, or 316 points to 17,148 points.
Oil prices on track for the first monthly loss in four years
Global oil prices fell in European trade on Wednesday on track for the third loss in a row, plumbing three-week lows on grim outlook for global demand due to Trump’s tariffs, and after a surge in US crude stocks.
Global oil prices are heading for their biggest monthly loss in four days as the US-China trade escalated, while OPEC+ heads for more production hikes, and with prospects of a US-Iran nuclear deal that could unleash more supplies to the markets.
Prices
US crude prices fell 1.55% today to $59.22 a barrel, the lowest since April 10, with a session-high at $60.39.
Brent fell 1.6% today to $62.16 a barrel, the lowest since April 9, with a session-high at $63.28.
On Tuesday, US crude lost 2.8%, while Brent shed 2.35%, the second loss in a row on global demand concerns.
Global Demand
PVM analysts told Reuters that the trade war between the US and China still dominates investor sentiment and is still the biggest mover for oil prices.
They added that other factors, such as US-Iran nuclear talks and OPEC+ production plans are also impacting prices, but by a smaller degree than trade concerns.
Otherwise, Reuters reported that oil tankers are lining up near an old port in western Venezuela to load shipments before the expiry of the US shipping license to local and international companies by the end of May.
US Stocks
Initial data from the American Petroleum Institute showed a buildup of 3.8 million barrels in US crude stocks last week, passing estimates of a 0.4 million barrels build.
Now traders await official data from the EIA later today, expected to show a drawdown of 0.6 million barrels.
Monthly Trades
In April, oil prices fell over 15% on track for the heftiest monthly loss since November 2021.
Oil prices recently hit four-year lows as the US-China trade war escalated.
The OPEC+ organization is also expected to hike production once more in June after an already large scheduled increase in May.