Partner Center Find a Broker

On Tuesday, Australia’s latest inflation report signaled the CPI growth rate held steady  at 3.4% y/y in February, holding at that rate for three months now (but coming below the 3.5% y/y forecast).

Food prices are finally growing a little slower at 3.6% y/y vs. 4.4% y/y previous, giving consumer wallets a nice little break.

The closely watched core inflation number rate ticked lower to 3.9%. That’s down from January read of 4.1% y/y, but still above the Reserve Bank of Australia’s 2% – 3% target range, keeping the odds elevated that the RBA will continue to hold interest rates at 4.35% for now.

Read the official Monthly Consumer Price Index report from the Australian Bureau of Statistics here

AUD Price Action Following the CPI update

Australia Consumer Price Index rose 3.4% y/y in February

Overlay of AUD vs. Major Currencies Chart by TradingView

After the data release, the Aussie instantly fell roughly -0.12% against the majors, bounced and then pushed lower to its intraday bottom, roughly -0.20% from the pre-event prices, within the span of one hour.

From there, we saw one more broad bounce and selling pressure back to the lows, preceding a turn in sentiment two hours after the data release.  The bullish turn seems to roughly correlate with positive economic news from Australia’s largest trading partner: China (China’s industrial profits rise 10.2% in Jan-Feb).

Looking for your own spot to record your market observations & trading statistics? If so, then check out TRADEZELLA! It’s an easy-to-use journaling tool that can lead to valuable performance & strategy insights! You can easily add your thoughts, charts & track your psychology with each and every trade. Click here to see if it’s right for you!

Disclaimer: Babypips.com earns a commission from any signups through our affiliate link. When you subscribe to a service using our affiliate links, this helps us to maintain and improve our content, a lot of which is free and accessible to everyone–including the School of Pipsology! We appreciate your support and hope that you find our content and services helpful. Thank you!