The publication of inflation data in Australia is the central event of the trading session in Asia. Yesterday, the AUD rose substantially against rival USD, expressing the desire to go back and retest the highs of May. And today the AUD against the USD reached its highest level since the introduction of floating exchange rate in 1983. Now the peak is a mark of 1.1063. As expected, the building was driven by the fact of publication of the report on consumer inflation in Australia in the second quarter of this school year.
The star of today's session will be the stress of the race against Obama which is subject to raise the debt ceiling before August 2. Although it is difficult to assimilate, the U.S. is less than a week of default. Moreover, it seems that the positions of Democrats and Republicans are approaching (the first call for raising taxes and the latter by lowering them), what is causing the market consensus is already discounting as likely that the U.S. loses its far untouchable AAA rating. Additionally, the session also publishes a fact of Durable Goods Orders, in principle, be weak and will underpin the bags.
Given this highly tense and a broadcast by Italian (€ 1,000M in 10-year bonds), we believe that the fall session will be moderate, widespread in both markets in the Eurozone and the U.S. market, with spreads Peripheral debt widened again and investors seeking refuge in assets like gold and the Swiss franc.
