Australian Dollar Bounces After Release of CPI Reports

The Australian dollar fell intraday during the current trading session but bounced after the release of inflation reports even though the data was not particularly supportive.

The Australian Bureau of Statistics reported that the Consumer Price Index rose 0.4% in the March quarter of 2018 from the previous three months, slower than in the December quarter of 2017 (0.6%) and slightly below the median forecast (0.5%). The trimmed mean CPI reported by the Reserve Bank of Australia increased by 0.5%, in line with expectations and a bit faster than the 0.4% rate of growth registered in the previous reporting period. Economists argued that the inflation data was soft enough to prevent the RBA from raising interest rates in the near future.

AUD/USD was down from 0.7604 to 0.7576 before bouncing to 0.7607 as of 9:35 GMT today. EUR/AUD slipped from 1.6051 to 1.6041 following the rally to the daily high of 1.6083.

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