After getting many blows, the Aussie finds comfort in rising inflation which paves the path for another rate hike. This report saved AUD/USD from losing an important support line. After the bounce, the road is north. Australian quarterly CPI showed a rise of 0.5% in Q4. This exceeded expectations for a 0.4% rise, although being less than last month’s 1% rise. After seeing a negative PPI at the beginning of the week, there were fears that also CPI will disappoint. This release comes at an important timing – a week before the rate decision. After the previous rate hike, the third in a row, there were doubts about another one. With an interest rate of 3.75%, the one month break from rate decisions could turn into a break from rate hikes. Now, after this was cleared, Glenn Stevens’ RBA will probably raise the bar to 4%. This article in Bloomberg shows that the chances are now higher for a rate hike. Interest rates are very important for currencies, and these expectations boost the Aussie. After dropping just below the important support line of 0.8950, to 0.8940, the Aussie enjoyed the CPI release to get back up, climbing to 0.9040. Renewed dollar strength is now pushing it back down to 0.8970, but the support line continues to hold. When the dollar will release the grip over the markets, I believe we’ll see further rises of the Aussie. It’s currently better positioned than other currencies such as the Euro and the Pound. This depends mostly on relief from the risk aversion trading sentiment that is felt again in the markets. More technical lines can be seen in the AUD/USD forecast. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading NewsOpinions share Read Next Positioning Data Yohay Elam 13 years After getting many blows, the Aussie finds comfort in rising inflation which paves the path for another rate hike. This report saved AUD/USD from losing an important support line. After the bounce, the road is north. Australian quarterly CPI showed a rise of 0.5% in Q4. This exceeded expectations for a 0.4% rise, although being less than last month's 1% rise. After seeing a negative PPI at the beginning of the week, there were fears that also CPI will disappoint. This release comes at an important timing - a week before the rate decision. After the previous rate hike, the… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.