​EBC Markets Briefing | Aussie dollar stalls on US GDP beat

The Australian dollar wobbled on Friday after a report showing the US economy grew faster than expected in Q2. Importantly, a measure called final sales to private domestic purchasers jumped 1.9%.

Australian consumer prices jumped by far more than forecast in July as electricity costs spiked, while core inflation also jumped in a blow to hopes of a rate cut as soon as next month.

Markets are pricing in the chance for an easing from the RBA next month of just 22%, although they are still confident of a move in November. The central bank lower interest rates this month for the third time.

According to its latest meeting minutes, policymakers saw arguments for a gradual pace of easing and for a quicker series of moves to preserve full employment, with the outcome uncertain as yet.

Fund managers say returns on emerging-market assets are set to power ahead of their developed peers given more orthodox fiscal policy and lower valuation, signalling market sentiment is improving.

Signs of India-China thaw primes Asia for deeper integration and thus brighter outlook. Access to the Indian market can be a big boost for Chinese companies at a time when there's a slowdown in domestic consumption.

The Aussie has recently fluctuated around 50 SMA, but lower highs painted a dim picture. Descending triangle sets the currency for more losses ahead.

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