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Forex: AUD/USD Fell to 0.7110 on Australia's Soft 3rd QTR CPI Data

Posted by Chris Advincula on Oct 28, 2015 6:57:06 AM

The australian dollar fell sharply against the US dollar from 0.7190 to 0.7118 (-72 pips) following Australia's soft 3rd quarter CPI data (00:30am GMT) in the prior Asian session. The front line CPI data rose +0.5% quarterly versus the +0.6% median forecast. The year-on-year was +1.5% versus the +1.7% median forecast. The inflation data has lowered the odds of the RBA raising their rates at the next policy meet.

The aussie has traded in a very narrow 25 range in Europe (High 0.7135 Low 0.7110) with no follow through selling or rebound as the market participants have stayed in the sidelines ahead of the FOMC policy statement later today at 18:00 GMT. Analysts expect no change in the Fed funds interest rate at 0.125%. 

Commodities are broadly lower which added to the aussie's weakness.Oil prices fell to multi-week lows as the US budget deal would sell 58 million barrels from the emergency reserves beginning 2018. Concerns on weaker macro and a higher dollar added presure to the aussie.

 

Chart: WorldWideMarkets Alpha Trader

 

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