Traders, with price ranges pretty narrow in recent sessions, traders will seek any catalyst to get things moving. Tonight's Australian CPI data may be the catalyst.
Based on a few research pieces I have seen, there is a decent number of analysts that think we could see that CPI reading come in above expectations - perhaps as high as 0.9% q/q. If so, that would put yearly CPI gains at 3.3%.
Since inflation numbers surprised on the upside for the past two quarters, another upside surprise suggests the RBA would signal an end to its easing cycle. That would be bullish for AUD/USD.
For me, it is certainly worth having a small piece (long AUD/USD) on into that release (9:30 PM PST) with stops below .9314.
AUD/USD Chart from Top FX Charts
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