AUD/USD climbs firmly to near 0.6400 on higher-than-projected Australian CPI at 7.3%

AUD/USD has advanced to 0.6400 as Aussie headline CPI has landed at 7.3% vs. projections of 7.0%.
The RBA would require returning to its 50 bps rate hike spell without inflation exhaustion signals.
A rebound in the risk-off impulse has pushed the DXY above 111.00.

Sagar Dua FXStreet

The AUD/USD pair has jumped to 0.6400 as the Australian Bureau of Statistics has reported the headline Consumer Price Index (CPI) for the third quarter of CY2022 at 7.3%, higher than the expectations of 7.0% and the prior release of 6.1% on an annual basis. Also, the quarterly inflation rate has landed in line with the former print of 1.8% and higher than the projections of 1.5%.

This may force the Reserve Bank of Australia (RBA) to announce a more significant rate hike in the upcoming monetary policy. It is worth noting that the RBA hiked the Official Cash Rate (OCR) by 25 basis points (bps) to 2.6% in its October monetary policy meeting. RBA Governor Philip Lowe slowed the pace of hiking rates in October as the central bank was banking upon a 50 bps rate hike spell earlier. A bigger-than-projected rate hike will compel the RBA to return to a 50 bps rate hike spell.

On Tuesday, the aussie bulls displayed a steep rise and defended China’s Jinping-infused pessimism. The unprecedented third term for China’s XI Jinping leadership dented investors' sentiment favoring Chinese equities and other related assets. The antipodean was punished for being a leading trading partner of China, as Jinping’s ideology-driven approaches were not healthy for China’s economic prospects.

Meanwhile, the US dollar index (DXY) displays a pullback move and has crossed the 111.00 hurdle. The risk-on profile has witnessed a dent as S&P500 futures have seen a vertical fall after a three-day buying spree. This could be a correction in the 500-stock basket of the US after a firmer rally.

AUD/USD

Overview
Today last price	0.6381
Today Daily Change	-0.0015
Today Daily Change %	-0.23
Today daily open	0.6396

Trends
Daily SMA20	0.6364
Daily SMA50	0.6612
Daily SMA100	0.6772
Daily SMA200	0.7001

Levels
Previous Daily High	0.6412
Previous Daily Low	0.63
Previous Weekly High	0.6393
Previous Weekly Low	0.6197
Previous Monthly High	0.6916
Previous Monthly Low	0.6363
Daily Fibonacci 38.2%	0.6369
Daily Fibonacci 61.8%	0.6343
Daily Pivot Point S1	0.6327
Daily Pivot Point S2	0.6257
Daily Pivot Point S3	0.6215
Daily Pivot Point R1	0.6439
Daily Pivot Point R2	0.6481
Daily Pivot Point R3	0.6551

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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