Trading the News: Australia Consumer Price Index (CPI)
Updates to Australia’s Consumer Price Index (CPI) may fuel the recent rebound in AUD/USD[1] as the headline reading for inflation is projected to increase to 2.2% from 1.9% per annum in the first-quarter of 2018.
The Australian dollar[2] may exhibit a more bullish behavior over the remainder of the month should the data prints put pressure on the Reserve Bank of Australia (RBA) to alter the forward guidance for monetary policy, and the central bank may start to change its tune in the second-half of the year as inflation approaches the central bank’s target of 2-3%.
In turn, Governor Philip Lowe & Co. may prepare Australian households and businesses for higher borrowing-costs at the next meeting on August 7, but another below-forecast CPI print may drag on the Australian dollar as it encourages the RBA to keep the official cash rate (OCR) at the record-low throughout 2018. Sign up and join DailyFX Junior Currency Analyst Daniel Dubrovsky[3] LIVE to cover the updates to Australia’s inflation report.
Impact that Australia CPI has had on AUD/USD during the previous print
|
Period |
Data Released |
Estimate |
Actual |
Pips Change (1 Hour post event ) |
Pips Change (End of Day post event) |
|
1Q 2018 |
04/24/2018 01:30:00 GMT |
2.0% |
1.9% |
+20 |
+13 |
