Aussie Epic Short After Wed Apr 29, 2020 Data Prints
Data Prints;
AUD RBA Trimmed Mean CPI (QoQ,Q1:)+ 0.5%
AUD COnsumer Price Iddex: (YoY) (Q1) +2.2%
RBA Trimmed Mean CPI: +1.8%
AUD CPI (QoQ, Q1): +.03%
Westpac forecasts headline inflation of 0.1%qtr, 1.9%yr, with falls in holiday travel (impacted by the bushfires and virus disruptions) and petrol prices. The Q1 trimmed-mean CPI is forecast to be a subdued 0.3%qtr, 1.6%yr. This is consistent with weak wages growth, patchy consumer spending and softness in housing inflation. The RBA has flagged that headline inflation could tumble to a negative rate in Q2, on petrol prices and policy-driven price reductions such as on childcare.
How could it affect AUD/USD?
Considering the global central banks’ plethora of efforts to combat the coronavirus, including the RBA, the first quarter (Q1) inflation figures are less likely to offer any further signals of additional easing by the Aussie central bank. However, the downbeat outcome may join the RBA’s forecasts of disappointing price pressures for Q2 readings and can challenge the AUD/USD pair’s latest upside.
Technically, Unless slipping below the mid-month top surrounding 0.6440, AUD/USD can keep targeting 100-day SMA, near 0.6575 during the further upside. In a case where the quote drops below 0.6440, a three-week-old rising support line near 0.6350 can lure the sellers.
About the Australia Consumer Price Index (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).
AUD RBA Trimmed Mean CPI (QoQ,Q1:)+ 0.5%
AUD COnsumer Price Iddex: (YoY) (Q1) +2.2%
RBA Trimmed Mean CPI: +1.8%
AUD CPI (QoQ, Q1): +.03%
Westpac forecasts headline inflation of 0.1%qtr, 1.9%yr, with falls in holiday travel (impacted by the bushfires and virus disruptions) and petrol prices. The Q1 trimmed-mean CPI is forecast to be a subdued 0.3%qtr, 1.6%yr. This is consistent with weak wages growth, patchy consumer spending and softness in housing inflation. The RBA has flagged that headline inflation could tumble to a negative rate in Q2, on petrol prices and policy-driven price reductions such as on childcare.
How could it affect AUD/USD?
Considering the global central banks’ plethora of efforts to combat the coronavirus, including the RBA, the first quarter (Q1) inflation figures are less likely to offer any further signals of additional easing by the Aussie central bank. However, the downbeat outcome may join the RBA’s forecasts of disappointing price pressures for Q2 readings and can challenge the AUD/USD pair’s latest upside.
Technically, Unless slipping below the mid-month top surrounding 0.6440, AUD/USD can keep targeting 100-day SMA, near 0.6575 during the further upside. In a case where the quote drops below 0.6440, a three-week-old rising support line near 0.6350 can lure the sellers.
About the Australia Consumer Price Index (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).
Comment:
All information and material is for educational and entertainment purposes only and is not intended to provide financial advice.
