On Wednesday, the AUD/USD pair is trading down after the release of the inflation report for Australia.
The Australian dollar held steadily in the middle of the medium-term trading channel in the pair with the US dollar for a while, but the latest published statistics have been rather weak. The current quote in the AUD/USD pair is 0.7132.
Today it was announced that the consumer price index in Australia for the third quarter turned out to be weaker than previously expected. Statistical data showed an increase in inflation by 0.5% in the reporting period against the strengthening of the index by 0.7% in the previous quarter. Yearly the indicator gained 1.5% while expecting growth of 1.7%.
The components of the release it can be seen, for example, that core inflation was 0.3% q/q, which is significantly below the forecast of 0.5%. In the last quarter, vegetables and communication services became significantly cheaper. Additional pressure, as elsewhere in the world, was from the reduction in energy prices.
The drawdown of inflationary pressures shows that even the soft monetary policy of the Australian government is unable to resist external pressure and reduce consumer activity. It turns out that the RBA needed to act quickly, lowering the rate more than the circumstances require - for preventive purposes. It is a negative point for the Australian dollar.
RoboForex Analytical Department
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