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28 Jan 2015
AUD/USD retreats further below 0.8000
FXStreet (Córdoba) - The AUD/USD pair erased most of day’s gains after pulling back below 0.8000. Recently dropped to 0.7939, reaching the lowest price since the release of inflation data from Australia that boosted the aussie during the Asian session.
From the highs at 0.8024, AUD/USD has fallen almost a hundred pips. Currently trades at 0.7945/50, 30 pips above the level it had before the release of inflation data. The report showed that during the fourth quarter the CPI rose 0.2%, below expectation of a 0.3% increase while the core rate rose above market consensus: +0.7% vs +0.5%.
The aussie climbed after the data but dropped during the European session, erasing most of the gains. The TD Securities Research Team notes that they were more prices rising than falling in Australia, creating time for the Reserve Bank of Australia, before making a move in interest rates. “We remain with the view that the RBA can leave the cash rate at 2.5%, but dovish noises about the uncertain global backdrop and weak commodity prices will keep the AUD under pressure and short bonds trading below the cash rate for some time.”
From the highs at 0.8024, AUD/USD has fallen almost a hundred pips. Currently trades at 0.7945/50, 30 pips above the level it had before the release of inflation data. The report showed that during the fourth quarter the CPI rose 0.2%, below expectation of a 0.3% increase while the core rate rose above market consensus: +0.7% vs +0.5%.
The aussie climbed after the data but dropped during the European session, erasing most of the gains. The TD Securities Research Team notes that they were more prices rising than falling in Australia, creating time for the Reserve Bank of Australia, before making a move in interest rates. “We remain with the view that the RBA can leave the cash rate at 2.5%, but dovish noises about the uncertain global backdrop and weak commodity prices will keep the AUD under pressure and short bonds trading below the cash rate for some time.”