Slower-than-forecast Inflation Data Drags Australian Dollar Down

Australian dollar fell to the lowest level versus its American counterpart since last Friday after the Reserve Bank of Australia reported a weaker-than-expected data on change in the price of goods and services purchased by consumers in last quarter.

In a report published on Wednesday, the RBA said that Australian trimmed mean CPI advanced to a seasonally adjusted 0.4%, from 0.4% in the preceding quarter. The figure fell short of consensus estimate calling for an increase of 0.5%.

Official data from Australian Bureau of Statistics also reflected slower-than-forecast inflation which was partly due to the weakness of China’s currency against the local dollar. Decreasing cost of imports like clothing only pushed quarterly headline CPI 0.5% higher compared a forecast of 0.7% by economists.

Annual CPI rose 1.5%, remaining below the bottom of the central bank’s target range for a ninth straight quarter.

Trade suggestion

Sell Stop at 0.75400, Take profit 0.75000, Stop loss at 0.75600

Start Trading Forex, Indices, Commodities And Hundreds of Other Markets With Capital Street FX Now!

Leave a Reply

Your email address will not be published. Required fields are marked *