Home Forex News The AUD/USD Pair Looks to CPI This Week

The AUD/USD Pair Looks to CPI This Week

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Markets could be in for a peaceful time this week with the AUD/USD pair looking towards one key information point which is CPI. 

Why is the CPI of intrigue this week? It’s because we should see a strong bounce back after the first lot of flattening that we’ve found in Australia in 74 years. Of course, this was caused by the lockdowns, and an absence of transactions in numerous businesses. However, the expectation is that this will bobbed back.

The prediction is for CPI to ascend by 1.5 percent quarter on quarter and 0.7 percent year on year – back from – 1.9 percent. There is additionally the way that we are drawing nearer to the next RBA meeting, where all the discussion is that rates will be chopped to 0.1 percent down from 0.25 percent.

While Wednesday’s CPI probably won’t have an excessive amount of effect on the choice, fortunately, it shows the economy is making something happen. Long gone are the days of 2-3 percent inflation that the RBA was searching for. Notwithstanding, no more deflation is positive, too. This stability is also being reflected in the AUD/USD, where price remains in the range between 0.7000 and 0.7200 for now. Any reasonable person would agree that the next rate cut is currently priced in already, so regardless of whether that happens, it is improbable we’ll see a drop of that 0.7000 level.

For the time being, we should likewise hang tight for the US Presidential Election, which is currently seven days away and will probably be the large driver of risk resources. It will be as straightforward as Trump’s triumph = an assembly for the AUD/USD. A Biden win = a fall for the Aussie. That is the condition we are working with throughout the following eight days in any event.

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