AUD: Focus On Inflation Data This Week – Credit Agricole

Credit Agricole CIB FX Strategy Research notes that the main domestic focus for the AUD in the coming week will be Australian CPI data, where the market looks for further acceleration in inflation but for underlying inflation (which is what the RBA targets) to remain below the RBA’s 2-3% inflation target band.

In that regard, CACIB also notes that there is a significant correlation between Australian and NZ headline CPI data, and the latter surprised the market to the upside last week.

"NZ’s CPI was pushed higher by energy prices, however, which should have less of an impact on Australia’s underlying inflation measures as they exclude volatile price movements," CACIB adds.

AUD/USD is trading circa 0.7556 as of writing.

Source: Credit Agricole CIB ResearchOriginal Article