Aussie CPI Ticks Higher
Rowan Crosby • 1 min read
The latest CPI data is out in Australia and we saw a slightly higher than expected number.
Q4 CPI came out at 0.9% compared to 0.7% expected. This was down on the prior of 1.6%.
Overall the AUD/USD is little changed on the session and we haven’t really seen price move all that much this week. As we can see on the chars, yesterday, bought about another test of the 0.7700 and once again price held that level quite strongly.
0.7700 has held up three times recently, through a period where that has been quite a lot happening in the USD. Interestingly, the USD did sell off quite hard yesterday and once again is moving towards the 0.9000 level on the US Dollar Index. That’s a level that has not really been able to break in the last month and also continues to hold up quite well.
To me, markets seem to be in a bit of a holding pattern at the moment and don’t really have a clear idea of where to go. I guess this is a reflection that capital hasn’t decided its true direction just yet. After all the controversy around the US election and what that means for the global economy, it is up to capital to decide its vote now.
With that in mind, I think we wait for a break out in the AUD/USD to determine where we stand as well. We have a clearly defined level at 0.7700 and the upward channel that is just holding on for now. Similarly, a break above 0.7800 will also prove that capital wants to move into the AUD.