Be Watchful as Australia’s CPI data Provides 25+ PIP Movement Against Counterparts; Oct 28, 2020
Australia CPI q/q
Australia will publish CPI as well as Trimmed mean CPI data on Oct 28 at 0030 GMT/0600 IST. It is the primary gauge of consumer prices and tends to create hefty market impacts. Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate. In the actual reading is higher than forecasted, it will be good for the U.S. dollar.
Let’s see how AUD has reacted during the previous data release:
AUD/USD: The Aussie trades almost flat ahead of CPI data. The pair made intraday high at $0.7141 and low at $0.7113 marks. On the top side key resistances are seen at $0.7142, $0.7190, $0.7222, $0.7240 and $0.7290 mark respectively. On the other hand, a consistent close below $0.7090 will take the parity down towards key supports around $0.7047, $0.7002, $0.6969, $0.6922, $0.6861, $0.6833 and $0.6799 mark respectively.
Take a look and do trade wisely!