Australian CPI (Consumer Price Index), which is released each quarter, measures the change in the price of goods and services charged to consumers. A reading which is higher than the market forecast is bullish for the Australian dollar.
Here are all the details, and 5 possible outcomes for AUD/USD.
Published on Wednesday at 1:30 GMT.
Indicator Background
Analysts consider CPI one of the most important economic indicators, and an unexpected reading from Australian CPI can quickly affect the direction of AUD/USD.
CPI dropped to 0.5% in Q4, missing the estimate of 0.7%. The forecast for Q1 is expected to edge up to 0.6%.
Sentiments and levels
The US economy is doing well, but the markets are not impressed with Trump’s first 100 days in office. Stronger global demand has boosted demand for Australian products, but US protectionism remains a serious risk. So, the overall sentiment is neutral on AUD/USD towards this release.
Technical levels, from top to bottom: 0.7835, 0.7741, 0.7605, 0.7513, 0.7429 and 0.7311
5 Scenarios
