Forex: AUD/USD sinks as Aus CPI well below consensus

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Forex: AUD/USD sinks as Aus CPI well below consensus

FITITOL--> FXstreet.com (Barcelona) - The Australian Dollar has fallen off a cliff after a weak CPI q/q print, which came in at 0.1% vs 0.6 expected. The CPI yearly reading stood at 1.6% vs 2.1% that consensus was pointing at.

AUD/USD fell sharply from 1.0320 all the way down to 1.0255 and appears to be now recovering a bit towards 1.0280. “Next level of support at 1.0226, but bids at 1.0250” comments John Noonan, analyst at IFR Markets.

The CPI data solidifies chances of a 25bp cut on May 1 from the RBA and beyond. As noted by Sean Lee at Forexlive: "Now the market will be speculating on 50bps rate cuts, or at least successive 25bps cuts."