Happy Tuesday, dear traders! Here’s what we follow:
How will AUD React on Consumer Price index?
Information is not investment advice
What will happen?
Australian Bureau of Statistics will announce Core PCE Price Index at 03:30 MT (GMT+3) on Wednesday, October 27.
Consumer prices account for most of the overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate. Although this data is extremely late relative to inflation data from other countries, it's the primary gauge of consumer prices and tends to create hefty market impacts.
Last time the result was better than the expectations, but AUD/USD declined right after the release and showed extreme volatility after.
How to trade on Consumer Price Index?
- If the Consumer Price Index is greater than forecast, the AUD is likely to strengthen against other currencies.
- If the Consumer Price Index is lower than forecast, the AUD is likely to weaken against other currencies.
Instruments to trade: AUD/USD, AUD/NZD, AUD/CAD.
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The most impactful releases of this week will fill the market with volatility and sharp movements.
Happy Tuesday, dear traders! Here’s what we follow:
Labor Market and Real Estate Market data was published yesterday. Markets are slowing down, so the economy is in recession. Today the traders should pay attention to the Retail sales in Canada.