Solid News

Australian Consumer Prices Accelerated Growth

1/26/2023 12:37 PM

The AUD/USD pair is moving within an uptrend at 0.7116.

Positive dynamics are developing against yesterday's report on Q4 dynamics of consumer prices: the index rose by 1.9% QoQ, acting as a driver of an increase in value by 7.8% YoY from 7.3% earlier. Most of all, domestic travel and accommodation rose in price – by 13.3%, electricity – by 8.6%, international travel – by 7.6%, and the growth in the cost of new housing was 1.7%. Thus, annual inflation in the country reached its highest since 1990, and the acceleration of the negative dynamics in the last four months is primarily due to higher food prices, which, according to the forecast of the Reserve Bank of Australia (RBA), will remain high in the short term.

Meanwhile, the US dollar slipped to 101.300 in the USD Index due to a poor adjustment in the 30-year real estate rate to 6.20% from 6.23% earlier. The Mortgage Market Index stood at 255.3, up from 238.7 previously but still well below the mid-2021 average of 900.0.

On the daily chart, the trading instrument is moving within a narrow ascending corridor with dynamic boundaries 0.7400–0.6950, having broken a full Fibonacci correction of 61.8%.

Technical indicators reinforce the buy signal: fast EMAs on the Alligator indicator are held above the signal line, expanding the range of fluctuations, and the AO histogram forms rising bars in the buying zone.

Resistance levels: 0.7165, 0.7268. | Support levels: 0.7100, 0.6928.

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