Forex forecast: How will Australia’s CPI impact AUD/USD?

NEW YORK (Forex News Now) – The Australian Bureau of Statistics is due to publish its quarterly consumer price index on Wednesday, in one of the day’s spotlight fx news events.

The reading has been forecasted to come in at 0.8 percent, according to two major online forex news outlets. This would be double the previous reading of 0.4 percent.

The bureau is scheduled to publish the data at 1:30 A.M. GMT; as such, the key gauge of consumer price inflation is likely to dominate Asian currency trading.

Given the current FX news, a better-than-expected result could lift AUD/USD toward resistance at the high of April 12, 0.9382. Bearing in mind the violent nature of Tuesday’s losses, however, a more modest gain is likelier.

A worse-than-expected result, on the other hand, could very well force the currency pair further down, toward key support around the low of March 26, 0.9001. In any event, the index is likely to help set the tone of the rest of the day’s FX news.

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