Australian CPI for April 6.8% vs. expected 6.4%, AUD pressured

Ross J Burland FXStreet

Aussie monthly Consumer Price Index (YoY) has been released as follows:

Australian CPI for April 6.8% vs. expected 6.4%.

AUD/USD update

AUD/USD is under pressure and testing below 0.6500.

While the data was higher than expected, a series of other data has arrived at the same time and is weighing on the Aussie.

China's NBS Manufacturing PMI contracts further to 48.8 in May vs. 49.4 expected

About the Consumer Price Index

The monthly Consumer Price Index (YoY), 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 purchasing power of AUD is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. A high reading is seen as positive (or bullish) for the AUD, while a low reading is seen as negative (or bearish). Note: This indicator started to be published in 2022 and it updates the price change for the last 12 months in Australia on a monthly basis, instead of the quarterly period of the main Australian CPI.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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