AUD failed again to get a foothold above the 0.7700 level – RBC CM

Sandeep Kanihama FXStreet Contributor

Sue Trinh, Senior Currency Strategist at RBC Capital Markets, notes that the AUD made another crack above 0.7700 post CPI, but has so far failed again to get a foothold above the level.

Key Quotes

“This coincides with the 200dma for AUD/JPY which comes in at 80.13 today. Headline CPI rose by 0.7% in Q3, with the y/y firming to 1.3% from 1.0% (consensus +0.5%/1.1%). The key core measures—trimmed mean and weighed median—rose by 0.35% on average (consensus 0.4%), with the y/y rate easing slightly to 1.5% (from an upwardly revised 1.6%). See here for our AU economists’ full take on the data. In short, the data were largely in line with the RBA’s forecasts and details suggest continued sub-target inflation for a few more quarters. RBC continues to expect the next RBA cut to be delivered in Q2 2017.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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