The major release of the day has just arrived in Australia's 4th quarter Consumer Price Index.
The data has arrived as follows:
- RBA Trimmed-Mean CPI +0.4 pct QoQ (Reuters poll +0.4 pct).
- CPI (all groups) +0.9 pct QoQ (Reuters poll +0.7 pct).
- RBA Weighted Median CPI +0.5 pct QoQ (Reuters poll +0.4 pct).
- RBA Trimmed-Mean CPI +1.2 pct YoY (Reuters poll +1.2 pct).
- CPI (all groups) +0.9 pct YoY (Reuters poll +0.7 pct).
- RBA Weighted Median CPI +1.4 pct YoY (Reuters poll +1.2 pct).
As for the Aussie's reaction, AUD/USD has popped to fresh highs of 0.7763 in an extension of the daily impulse.
However, the overextended W-formation's bullish impulse could be due for a correction, a thesis illustrated in the following article and prior analysis from the New York session:
AUD/USD Price Analysis: Bulls counting on a break of symmetrical triangle resistance
Given the extension since the analysis, a correction may only make it as far as the nearest level of the support structure, if indeed the dynamic resistance of the trendline of the symmetrical triangle pressures the price lower.
If the structure breaks, then the bulls will be expected to take charge and only give back some ground to the prior trendline resistance that will instead turn to support.
Daily chart
4-hour chart
Description of CPI
The Consumer Price Index released by the RBA and republished by the Australian Bureau of Statistics is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services.
The trimmed mean is calculated as the weighted mean of the central 70% of the quarterly price change distribution of all CPI components, with the annual rates based on compounded quarterly calculations.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.