Breaking: Aussie CPI mainly in below expectations, AUD pressured

FXStreet Team FXStreet

Australian Consumer Price Index was seen steady in the first quarter after last quarter’s deceleration.

A positive surprise would have been expected to fuel a policy change debate for the central bank but the data has missed expectations and the Aussie is under pressure.

The outcome was as follows:

CPI data

Australian CPI (QoQ) Q1: 0.6% (exp 0.9%; prev 0.9%).
CPI (YoY) Q1: 1.1% (exp 1.4%; prev 0.9%).
CPI Trimmed Mean (QoQ) Q1: 0.3% (exp 0.5%; prev 0.4%).
CPI Trimmed Mean (YoY) Q1: 1.1% (exp 1.2%; prev 1.2%).
CPI Weighted Median (QoQ) Q1: 0.4% (exp 0.5%; prev 0.5%).
CPI Weighted Median (YoY) Q1: 1.3% (exp 1.3%; R prev 1.3%).

''Government assistance has had a big impact on the CPI and for the next few quarters the unwinding of those packages is set to boost inflation,'' analysts at Westpac said.

AUD/USD reaction and technical analysis

AUD/USD has dropped on the data as traders await the outcome of the Federal Reserve's interest rate decision.

From a longer-term perspective, the daily chart shows that the price may stall on the offer at an important structure of confluence where the 61.8% Fibo meets the 10-day EMA as a keen target to the downside within the support structure that would be expected to be the last defence.

Description of the Consumer Price Index

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.

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FXStreet Team

FXStreet

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