AUD/USD: Bids elusive despite above-forecast Aussie CPI


  • AUD/USD in stasis even as Australia's Q3 CPI beats estimates. 
  • The data is unlikely to deter the RBA from postponing additional easing. 
  • With coronavirus cases rising across the globe, the RBA is likely to cut rates next month.

A better-than-expected Australian consumer price index (CPI) inflation data released soon before press time is struggling to draw bids for the Aussie dollar, leaving the AUD/USD pair largely unchanged no the day near 0.7120. 

CPI sees stronger rebound

Australia's CPI rose 1.6% quarter-on-quarter in the third quarter, bettering the estimate of 1.5% following the second quarter's 1.9% contraction. The annualized figure matched the estimate of 0.7%. 

Meanwhile, the Reserve Bank of Australia's (RBA) trimmed-mean CPI increased 0.4% quarter-on-quarter versus expectations for 0.3% and -0.1% previously. The annualized trimmed measure came in at 1.2%.

Though a welcome development, the upbeat data may not be enough to deter the RBA from reducing rates to a record low of 0.1% from 0.25% in November. That's because the coronavirus cases are again rising across Europe and in the US and threaten to derail the global economic recovery.

"The continuation of the global recovery is dependent on containment of the virus," the minutes of the RBA's October meeting released earlier this month. The minutes added that the jobless rate is likely to remain elevated for an extended period, and the recovery is likely to be slow and uneven, keeping inflation subdued for some time. 

As such, the AUD's dull response to Australia's upbeat CPI is not surprising. The currency may suffer losses during the day ahead as global stocks are facing selling pressure on prospects of fresh lockdown restriction across Europe. 

Technical levels

AUD/USD

Overview
Today last price 0.7126
Today Daily Change -0.0002
Today Daily Change % -0.03
Today daily open 0.7128
 
Trends
Daily SMA20 0.7139
Daily SMA50 0.7195
Daily SMA100 0.711
Daily SMA200 0.6797
 
Levels
Previous Daily High 0.7148
Previous Daily Low 0.7113
Previous Weekly High 0.7159
Previous Weekly Low 0.702
Previous Monthly High 0.7414
Previous Monthly Low 0.7004
Daily Fibonacci 38.2% 0.7135
Daily Fibonacci 61.8% 0.7126
Daily Pivot Point S1 0.7112
Daily Pivot Point S2 0.7095
Daily Pivot Point S3 0.7077
Daily Pivot Point R1 0.7147
Daily Pivot Point R2 0.7165
Daily Pivot Point R3 0.7182

 

 

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