Australia: AUD to jump higher on upside inflation surprise – Commerzbank
|Australian Q4 Consumer Price Index (CPI) data could be the deciding factor for RBA's February meeting. Economists at Commerzbank believe that an upside surprise could lift the Aussie.
Rate cycle in Australia almost over?
“Consumer prices are likely to increase the expectation of a rate step next week, if they are in line with expectations, thus supporting AUD a little. If the data surprises to the upside, the AUD is likely to jump higher due to the adjustment of rate expectations.”
“it will be more interesting for AUD how the RBA positions itself for the coming months as of 1st February – i.e. whether an imminent end of the rate cycle is in view or not. If that is the case the market is likely to lower its expectations for the peak of the key rate, which would put pressure on AUD.”
See – Australian CPI Preview: Forecasts from seven major banks, sticky inflation figures
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.