AUD/JPY soars after Australian inflation report

FXstreet.com (Córdoba) - The AUD/JPY jumped after the release of the Australian CPI report and climbed to test 92.45, where yesterdays highs lie. Before the inflation numbers the pair was trading at 91.73 and jumped 70 pips in a few minutes. The Aussie gained momentum across the board.

According to the Australian Bureau of Statistics the Consumer Price Index rose at a rate of 0.8% during the fourth quarter; surpassing analysts expectations for a 0.5%. The annual rate rose at 2.7%, above the 2.5% expected and the previous 2.2%.

AUD/JPY recovery gaining momentum

At the moment of writing, the pair was trading at 92.42, up 0.55% for the day; testing a strong short-term resistance around 92.45 that capped the upside on Tuesday. If it breaks above the Aussie would be trading at the strongest level since the release of the employment report last Thursday, extending the recovery from Monday's low (91.02).

Market pricing +5bp RBA rate hikes over 12 months as a response to Aus CPI numbers

After the stronger-than-expected Australian CPI series for Q4 2013, the Australian OIS pricing has readjusted higher over 10 basis points, going from expectations of 6bps of cuts in the next 12 months to currently price 5 basis points of rate hikes. As a result, the Australian Dollar is enjoying some solid follow through across the board.
Baca lagi Previous

Australian CPI to change the RBA game plan?

The Australian CPI numbers came way hotter than the market was expecting, with the immediate consequence being market pricing +5bp RBA rate hikes over 12 months as a response.
Baca lagi Next