US inflation pushed higher, according to the latest reading of the preferred inflation gauge of the Fed, the PCE indicator. This was not unexpected, but did result in bond yields spiking higher, along with the US Dollar. The EUR drifted back to 1.1650, while the GBP slipped back below 1.3600. The Jackson Hole Symposium, for global Central Bankers, opens today. Expectations are high, for Federal Reserve Chairman Warsh, to make an impactful contribution. This will be his first Symposium as Federal Reserve Chairman and his commentary will be key, although he may go in a different direction than expected. He is catalysts for change in the Fed and may offer some revolutionary changes, rather than just monetary policy and economic observations.Australian inflation numbers released yesterday, revealed a spike in inflation, although the trend lower continued. This was hardly surprising considering the burgeoning energy crisis revival, but markets had expected that inflation would fall to fall to 3.2%, whereas reality revealed 3.5%. This was enough to warrant further pressure on the RBA for interest rate rises. The AUD jumped back towards 0.7200, despite the rising reserve, while the NZD dipped below 0.5950.
