Australian Inflation Expectations Up, Rate Cuts Still a Concern
THE TAKEAWAY: Australian Consumer’s reported higher inflation expectations in February than January > May be indicative of higher economic confidence, but RBA rate cuts remain a concern > AUD Outlook Neutral
Australian Consumer Inflation Expectations for February came in at 2.2%, surpassing January’s inflation growth expectations of 2.0%. Consumer’s anticipation of higher inflation may be indicative of greater confidence in the Australian economy, which has appeared to be lagging given recent lower than expected retail numbers and uninspiring employment numbers. The AUD/USD showed slight upwards movement following the data release, but quickly retreated back to pre-release levels.
While the Aussie remains the go to investment currency within a risk-on market, its value may show significant fluctuation as key economic data reports come out of Australia. Forex traders should continue to look for negative/positive economic indicators, which may/may not push the RBA closer to cutting interest rates.
AUD/USD (30 Minute – 10 Day Chart)
Chart created usingMarket Scope– Prepared byJason Shemtob
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.