According to the official report released by the Reserve Bank of Australia (RBA), the local rate of consumer inflation dropped a little bit in Q1 2016. The Australian Dollar instantly reacted with a drop as well, Market Leader reports.
The thing is, the quarterly index of consumer prices came in at 0.2%. That said, the figures turned out to be weaker than the previous readings of 0.4%. At the same time, the actual figures happened to be worse than those predicted by financial experts (0.3% for Q1 2016).
As for the year-over-year index of consumer prices in Australia, this one showed some weakness as well by dropping from 1,7% all he way down to 1.3% over the same reporting period, which is Q1 2016. The expert community had expected 1.8%, which means that the figures also failed to come u to analyst expectations once again.
It is also interesting to note that the RBA releases this index to let you evaluate the changes in the prices on the basket of consumer products and services in Australia. A weaker index leads to a weaker national currency, which is the Australian Dollar.
FOREX
In the meantime, Masterforex-V Academy reports that the Australian Dollar is currently retracing from the rally against the U.S. Dollar. To be more specific, AUDUSD is still building wave A/B of level Weekly. The price is busy scaling up the wave level of the existing move.
On breaking above the 0.7833 high, the currency pair is going to continue the existing wave.
The closest levels of resistance are Fibo levels 0.7850, 0.8036/71, 0.8167. A break below MF pivot 0.7490 and the bottom of the ascending MF sloping channel is going to put an end to the current move.
