The AUD/USD pair is trading to the downside after Australia published rather mixed report on the inflation.
In the middle of the week, the Australian Dollar is falling against the USD. The current quote for the instrument is 0.7482.
Today’s report showed that the CPI in Australia added 0.5% q/q in the first quarter of 2017, although it was expected to expand by 0.6% q/q. On YoY, the indicator increased by 2.1% against the previous reading of 1.5% and expectations of 2.2%.
The Core Inflation Rate in the first quarter was 0.5% q/q (+1.9% y/y) after expanding by 0.4% q/q in the fourth quarter of 2016.
The components of the report show that among the things that increased the most were fuel, medical and hospital services, and new dwelling purchases. On the other hand, prices for furniture, international holiday travel and accommodation decreased.
The inflation is a very important issue for the RBA’s monetary policy. This is probably why the response to the report, which fell short of expectations, was so significant.
RoboForex Analytical Department