Australian CPI overview
Very early on Wednesday at 00:30 GMT will see 2018’s 3rd quarter inflation data dump for the Australian economy, and the headline q/q CPI reading is expected to come in at 0.4%, holding steady with the previous quarter’s iteration. heading further into the market’s expectations, the Reserve Bank of Australia’s (RBA) trimmed-mean CPI is also expected to clock in at 0.4%, a slight decline from the previous period’s 0.5%, while the annualized CPI is expected to show 1.9%, a soft decline from the previous 2.1%, and although Australia’s inflation reading for Wednesday is expected to continue towing the line, broader market expectations for an improved reading are on the low side as the broader Australian economy continues to struggle with lop-sided growth figures and a twitchy housing market.
How could it affect the AUD/USD?
According to FXStreet’s own Valeria Bednarik, the Aussie is trading cautiously near the 0.7100 key figure ahead of Wednesday’s inflation reading: “the 4 hours chart for the pair shows that moving averages are directionless, with the price currently hovering around a flat 100 SMA, and well below the 200 SMA, as technical indicators ease within positive ground, indicating that buying interest is not strong enough. The pair has reached a weekly high at 0.7124 last week, with the current one at 0.7120. If the pair is unable to clearly break above it and rally, bulls will likely become discouraged, probably resulting in a downward move to fresh yearly lows.”
Support levels: 0.7080 0.7040 0.7000
Resistance levels: 0.7120 0.7155 0.7190
Key notes
AUD/USD analysis: battling around 0.7100 ahead of Q3 inflation figures
AUDUSD Analysis: Reveals new ascending channel
AUD/USD Forecast: bullish above the 0.7120 price zone
About the Australian CPI
The Consumer Price Index released by the RBA and republished by the Australian Bureau of Statistics is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services . The purchase power of AUD is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. A high reading is seen as positive (or bullish) for the AUD, while a low reading is seen as negative (or Bearish).
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