AUD a little lower after encouraging, falling, inflation data

The latest official CPI data from Australia was very welcome indeed, showing sharp falls for both headline and core inflation rates:

The Reserve Bank of Australia target is 2 to 3%, so we are not there yet, but given the peak CPI rate was close to 8% this result is much improved.

The RBA meet on February 5 and 6, its almost certain it’ll be an on hold decision.

AUD/USD dropped a little:

This article was written by Eamonn Sheridan at www.forexlive.com. Source