On Wednesday, the AUD/USD is being sold very actively after the inflation statistics was published.
In the middle of the week, the Australian Dollar is under some significant pressure against the US Dollar. In late afternoon, the UAD/USD pair is trading downwards near 0.7591; the daily decrease is about 2%.
This morning, they published the statistics on the CPI, which, as a matter of fact, upset investors. According to the published data, over the first quarter 20126, the CPI decreased by 0.2% against the predicted increase by 0.3%. On a year-on-year basis, the Australian inflation is just 1.3% against the previous number of 1.7% and the predicted one of 1.8%.
So, Australia turned out to be another economy, which is cast by the deflation shadow. Retails prices are weak, consumer trends declined – all these counted against the Australian Dollar. If investors don’t find any other catalysts, this driver will remain in effect for a little longer.
In this case, the US Dollar has strengthened only because of the poor macro economic statistics. Tendencies may change a bit come evening, if after the April meeting of the Federal Reserve trading participants have a string on the US Dollar. The meeting will be over on Wednesday evening, and the market is sure to be ready to “drown” the American currency on all fronts.
RoboForex Analytical Department
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