The monthly inflation number (it has caveats, but I don’t want to be a stick in the mud) is perhaps showing CPI has peaked, it dropped in January:
And the GDP data is here, a miss, but let’s highlight this instead (back to being a stick in the mud I am):
AUD is lower as RBA expectations are lowered in light of the data. Don’t get too carried away folks, the target band for inflation is 2 to 3% and at 9.1% (the deflator), or 7.4% (monthly) if you prefer, its still between 2.5 to 3 times higher than the upper limit of the RBA’s target range.
This article was originally published by Forexlive.com. Read the original article here.