AUD failed again to get a foothold above the 0.7700 level – RBC CM

Sue Trinh, Senior Currency Strategist at RBC Capital Markets, notes that the AUD made another crack above 0.7700 post CPI, but has so far failed again to get a foothold above the level.

Key Quotes

“This coincides with the 200dma for AUD/JPY which comes in at 80.13 today. Headline CPI rose by 0.7% in Q3, with the y/y firming to 1.3% from 1.0% (consensus +0.5%/1.1%). The key core measures—trimmed mean and weighed median—rose by 0.35% on average (consensus 0.4%), with the y/y rate easing slightly to 1.5% (from an upwardly revised 1.6%). See here for our AU economists’ full take on the data. In short, the data were largely in line with the RBA’s forecasts and details suggest continued sub-target inflation for a few more quarters. RBC continues to expect the next RBA cut to be delivered in Q2 2017.”