Solid News
Australian Inflation Continued to Rise in the Fourth Quarter
1/12/2023 1:00 PMAmid the decline of the US dollar, the AUD/USD pair is correcting around 0.6922.
Despite the steps the Reserve Bank of Australia took to tighten monetary policy, Q4 consumer prices corrected upward again, reaching the analysts' forecast of 7.3% from 6.9% earlier, which, however, did not lead to a depreciation of the national currency. Experts believe that the regulator has two main scenarios left to stabilize the situation: accelerate the pace of interest rate hikes or stimulate the growth of gross domestic product (GDP), ignoring inflation. That the economy has begun to turn towards recovery is evidenced by retail sales data, which rose 1.4% in November after gaining 0.4% a month earlier, while exports fell 0.4%, and imports – by 1.5%, which led to a slight increase in the trade balance to 13.201B Australian dollars.
Yesterday, for the first time since last June, the American currency fell below 103.000 in the USD Index and is now around 102.800. Investors are looking forward to today's publication of US consumer prices for December: the figure could drop to 6.5% and the core value to 5.7% from 6.0%, which is quite logical given the aggressive interest rate hike from which the US Fed has no plans to withdraw yet.
On the daily chart, the trading instrument is moving within the global ascending corridor, rising towards the resistance line.
Technical indicators reinforce the buy signal: fast EMAs on the Alligator indicator are above the signal line, and the AO oscillator histogram rises in the buy zone.
Resistance levels: 0.6970, 0.7120. | Support levels: 0.6860, 0.6730.