CPI data is out tonight as market forecasts 0.5% increase compared to 0.6% in the previous quarter. On an annual basis, market analysts expect CPI at 1.7%, compared to 1.6% reported during the previous reporting period. Most importantly, trimmed CPI is expected at 0.4%.
“Despite Q3 typically being a seasonally solid month for Australian CPI, Citi analysts headline CPI forecast is around half the average print at 0.5% to produce a yearly CPI result of 1.06%,unchanged from Q2. Citi’s forecast for the more important trimmed mean CPI is 0.4%, leaving it just short of RBA’s August SMP forecast,” it is noted in Citi’s preview.
In the meantime, AUDUSD is up against the resistance at $0.6860. The 100 DMA comes at $0.6850. A close above these two levels will pave the way for more substantial gains for the Aussie. On the other hand, disappointing CPI figures may lead to a third attempt to break the important $0.6770 support level.Download our latest quarterly market outlookfor our longer-term trade ideas.
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