Australia – Where has the inflation gone?


AUD/USD, Daily    

The Aussie dollar dove on CPI data:  Australian inflation tumbled to 1.3% y/y in March from 1.7% in the previous month, with the q/q figure unexpectedly turning negative for the first time since 2008, falling to -0.2%. The Aussie is nursing over  1.5% loss to the USD and is down by 1.7% versus the yen, which registers the biggest movement out of the currencies we track. The data has catalyzed speculation that the RBA will be forced to consider at rate cut at its May-3 policy meeting. AUD-USD clocked a nine-day low at 0.7623.

Technically, the 23.6 Fib level and Psychological 0.7600 area has held so far today, 0.7510 has 50 DMA and lower Bollinger band and the longer term daily support and 38.2 Fib sit at 0.7450. Upside resistance at the round numbers 0.7700 and 0.7800.

All eyes on the FOMC today, BOJ tomorrow and the RBA next Tuesday (May 3rd), an extremely interesting few days ahead.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

About Janne Muta, HotForex’s Chief Market Analyst

jmutaJanne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.

Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.

“My mission is to help you to become a confident and successful trader”

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.