AUD/USD's Subdued Reaction to CPI | Vantage FX

AUD/USD’s Subdued Reaction to CPI

October 27, 2016

And there goes Australian CPI for another quarter.

AUD CPI q/q: 0.7% v 0.5% expected, and 0.4% previous.

The headline beat saw the Aussie Dollar initially shoot skyward, but gains were short lived as price fell back down through London and New York.

This was because the core inflation number was subdued, coming in at 1.3% v the 1.4% expected. This is the figure that the RBA keeps a close eye on when making monetary policy decisions and the sober reading is the one that everyone is now talking about and putting pressure on the Aussie.

Check out yesterday’s AUD/USD charts and the way that price is still reacting around the daily trend line resistance level that we were talking about.

AUD/USD Hourly:
Click on chart to see a larger view.

The CPI beat gave price the instant kick, but concerns around the core inflation level possibly keeping the door for the RBA to cut ajar (something I don’t exactly agree will happen) meant that as soon as we hit London session, price was smacked back down.

On that hourly chart, I’ve highlighted how easy it is to find intra-day levels to manage your risk around. At the time of publishing, that right there is something like a 10 pip stop offering crazy-good risk:reward on the trend line reactivation if you’re ultra aggressive.

There’s certainly plenty of opportunity in these types of levels.


On the Calendar Thursday:
NZD Trade Balance

GBP Prelim GDP q/q

USD Core Durable Goods Orders m/m
USD Unemployment Claims

Fund Your Account Today and Win an Apple iPhone 7 or iWatch Series 2!

Open or fund your Vantage FX account today and win an Apple iPhone 7 or iWatch Series 2. Click the banner to get started!

Dane Williams – @VantageFX

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Forex broker Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, forex news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and FX broker Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.




Fast & Easy Account Opening Start Now!

  • Please enter a valid data!

  • Please enter a valid data!

  • Please enter a valid data!

  • Please enter a valid data!

  • Please enter a valid data!
Forex Promotions

Open a live account today to gain exclusive access to our 8 Forex Promotions. 

Find out more.