The level of consumer inflation in Q3 2015 happened to go below expectations, the recent reports show. Investors say that the likelihood of another round of quantitative easing has now increased. In particular, consumer prices advanced by 0,5% over the reporting period, the Australian Bureaus of Statistics reports.
Still, the index underperformed relative to analyst expectations. The thing is that they had expected 0,6% after a 0.7% increase a month before. As far as the year-over-year figures are concerned, the level of consumer inflation increased by 1,5% against the forecast of 1,7%. When adjusted for seasonality, the basic inflation level underperformed - 0,3% against 0,5% expected.
All in all, the inflation figures pushed the Aussie’s value down against the U.S. Dollar. The thing is that traders and investors assume that the RBA is going to resume QE.
FOREX
In the meantime, the Australian Dollar is still going down within the scope of a mid-term downtrend. AUDUSD is going down within the framework of a bearish momentum - wave A/B of level Daily or higher. The currency pair is still within a smaller-scale move - wave 3/C of the downtrend, Masterforex-V Academy reports.
The closest levels of support - 0.7069/57, 0.7043/40, 0.7014/00 and 0.7001.
The closest levels of resistance - 0.7295 + the top of the descending MF sloping channel.
