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CPI Falls Again
The Aussie Dollar has come under pressure today on the back of the latest set of Australian inflation figures released overnight. CPI was seen cooling further last month, with the quarterly reading falling to 0.8% from 1.4% prior., below the 1% the market was looking for. The trimmed quarterly figure was seen falling to 0.9% from 1.2% prior, below the 1.1% the market was looking for. Meanwhile, the yearly figure was seen cooling to 5.4% from 5.6% prior.
RBA in Focus
While the data doesn’t entirely rule out any further RBA tightening, this latest cooling does point to the RBA remaining on hold near-term. The bank kept rates unchanged at the last meeting, on the back of two consecutive rate hikes, and signalled a willingness to do more if necessary but it said it would be guided by the data. Annually, inflation likely isn’t falling as fast as the bank would like though while still moving lower, AUD is retreating for now as traders scale back RBA rate projections into year-end.
Technical Views
AUDUSD
For now, the pair remains rangebound between the .6681 and .6857 levels. Momentum studies remain in the green for now, keeping the focus on further upside for now. Bulls will need to see a break of the range highs and bear trend line to encourage fresh upside momentum.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.