Thursday 11th August 2022

US inflation numbers were lower than expected, giving markets a major boost if confidence. Shares rose sharply, thew VUIX index fell to the lowest in quite a while, the USA dollar weakened, and the Aussie dollar was given a major boost. But will the enthusiasm last? As NAB’s Tapas Strickland explains, the falls were largely related to lower energy prices and the low-side core surprise was a payback for the high-side reading in June. In fact, the core reading is still rising and the Fed has made it clear they still have more work to do. So, can we expect markets to retrace their steps a little over the next day or so?