AUD/USD Above 0.9430 after CPI Data

Australian consumer prices rose only modestly last quarter but a surprisingly high reading for a key gauge of underlying inflation was enough to dent market speculation of future rate cuts and lift the local dollar.

The main offender was the trimmed mean measure of prices which jumped 0.8 percent in the quarter and 2.9 percent for the year, above analysts forecasts of 2.7 percent.

That could pose a challenge to the Reserve Bank of Australia’s (RBA) confidence that inflation would stay comfortably within its long-term target band of 2 to 3 percent.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.