The Australian Dollar has been performing well so far and received a lift when inflation figures were better than forecast. This has given a much needed boost to the currency, and will now lower the chance of an interest rate cut next week. Consumer price index slowed to 1.7% in quarter 4 of last year, whilst inflation increased to 0.7%, up from 0.3% in quarter 3. With Canada cutting their interest rates, it had seemed likely that Australia would also follow suit; today’s good news leaves Australia in a much stronger position.
With the Eurozone’s sanctions against Russia supposed to be ending soon, reports released on Wednesday indicated that these will be extended for a further 9 months. This shows the Eurozone’s tough stance against Russian involvement in the Ukrainian crisis, and could trouble the Russian economy further.