January 30, OctaFX – The Australian dollar rose sharply after positive inflation numbers. Data from the Australian bureau of statistics showed that Q4’s CPOI rose by 1.8%, which was higher than the consensus estimate of 1.7%.
This was lower, however, than Q3’s inflation growth of 1.9%. On a QoQ basis, the CPI increased by 0.5%, higher than the expected 0.4%. The CPI index number for the fourth quarter was 114.10 while the weighted mean CPI rose by 1.7%. These numbers could make a case for the RBA to raise rates later this year or early next year as they approach the target 2.0%.
AUDUSD Technical Analysis
The AUDUSD pair jumped today after the CPI numbers from Australia. The pair moved from a low of 0.7135 to a high of 0.7195. This price is above the 21-day and 42-day EMAs while the RSI has moved closer to the 70 level.
While the upward trend of the pair could continue, there may be some volatility after the US data that will affect the US dollar. The key points to watch for the pair will be 0.7225 and 0.7170 as shown below.
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