The Australian dollar rose after the country reported better-than-expected inflation numbers for the second quarter.
31 July 2019, OctaFX – The headline CPI increased by 1.6%, which was higher than the first quarter’s 1.3%. The average consensus estimate was 1.5%. On a QoQ basis, the CPI increased by 0.6%, which was better than the expected increase of 0.5%.
The trimmed mean CPI for the quarter rose by 1.6% while the weighted mean CPI remained unchanged at 1.4%. Meanwhile, in China, the manufacturing PMI in July increased to 49.7 from the previous 49.4.
EURUSD traders focus on the highly anticipated FOMC decision
The biggest headline today will be the Federal Reserve interest rates decision. The bank is expected to lower interest rates by 25 basis points, which will be the first-rate cut in more than 10 years. Bank officials have signaled that the rate cut will help caution the US economy from the adverse effects of global economic easing.
The Fed has been under heavy criticism from Donald Trump, who has blamed it for raising too fast. The rate cut will not be the biggest news because it has already been priced-in by the market. What will move the market will be the accompanying statement that will signal the number of rates to expect this year.
AUDUSD technical analysis
The AUDUSD pair rose today after positive economic data from Australia and China. The pair reached a high of 0.6892, which was along the 50-day moving average level. The RSI has moved from the oversold level of 30 to the current 60. The pair is likely to continue moving higher, to test the 23.6% Fibonacci Retracement level at 0.6915.
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