Australia’s CPI surge hints at prolonged tight monetary policy. Watch the Aussie dollar as US economic data looms.
Australia’s Consumer Price Index (CPI) was released this morning, surpassing expectations and indicating robust inflationary pressures:
- Quarterly CPI: Actual 1.0%, Expected 0.8%, Previous 0.6%
- Annual CPI: Actual 3.5%, Expected 3.4%, Previous 3.4%
The stronger-than-expected inflation figures suggest a potential extension of the Reserve Bank of Australia’s tight monetary policy, propelling the Australian dollar higher against other currencies.
From its yearly low against the US dollar recorded on April 19, the Aussie has surged by over 2%.
Today’s technical analysis of the AUD/USD chart reveals:
- Price has reached the median of the ascending channel, historically serving as support, now likely to act as resistance.
- Key support remains at the 0.64 level, aligning with the lower channel boundary.
- RSI indicator signals overbought conditions.
A short-term correction is plausible after the rapid uptrend, potentially retracing 50% of the A→B impulse.
To gauge the long-term outlook, upcoming US economic data releases will be critical:
- US GDP, scheduled tomorrow at 15:30 GMT+3
- Personal Consumption Expenditures (PCE) USA, due on Friday at 15:30 GMT+3.
FXOpen offers spreads from 0.0 pips and commissions from $1.50 per lot. Enjoy trading on MT4, MT5, TickTrader or TradingView trading platforms!
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Disclaimer: The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff.
