Will CPI push USD higher?
The US CPI will come out on Wednesday, May 11, at 15:30 MT time (GMT+3).
Will the AUD Outperform on Inflation Rate Release?
Information is not investment advice
What will happen?
Australia will publish its Inflation Rate on January 25, at 02:30 MT time. This is a significant release that shows the quarter over quarter change in the price of goods and services. It comes out together with the trimmed mean CPI that is calculated as the headline indicator minus the most volatile 30% assets.
Why is it important?
Given current uncertainties around rising prices worldwide, the release of CPI grabs a lot of attention. Based on the change in inflation figures, central banks make their decisions regarding monetary policy. If the inflation goes above its target, regulators tend to turn hawkish. As a result, the currency strengthens as well.
Last time, the Australian dollar outperformed on the higher-than expected trimmed mean CPI. While the headline indicator came out in line with the forecast of 0.8%, the core level jumped by 0.7% (vs. the forecast of 0.5%).
How to trade on the Australian Inflation Rate?
It’s easy! Just compare the actual data with the forecasts which appear a few days before the report in the economic calendar.
- If the figures are higher than the forecasts, the AUD will rise.
- Otherwise – fall.
Instruments to trade: AUD/USD, AUD/JPY, AUD/NZD
Similar
US PCE Adds Fuel to the Fire
The United States Bureau of Economic Analysis will release monthly Personal Consumption Expenditures (PCE) on April 29, 15:30 GMT+3.
GDP Release Scares the Dollar
United States Bureau of Economic Analysis will release Gross Domestic Product (Advance GDP) on April 28, 15:30 GMT+3.
Popular
Bank of England Tries to Save the Pound
The governor of the Bank of England, Andrew Bailey, will hold a speech on June 29 at 15:30 MT time (GMT+3).
How Will US PMIs Affect the USD?
The US Markit will publish Flash Manufacturing and Flash Services PMIs (purchasing managers' indices) on June 23 at 16:45 GMT+3.
Will Fed Chair Powell Move the USD?
The Fed Chair Jerome Powell will testify on the Semi-Annual Monetary Policy Report before the House Financial Services Committee on June 22-23 at 17:00 GMT+3.
Choose your payment system
