AUD/JPY clocks three-month high on upbeat Aussie inflation data

Australian CPI beat esdtimates, while RBA preferred trimmed mean matched estimates, thus bosting the demand for Aussie. AUD/JPY cross clocked a fresh trheee-month high of 80.21 and was last seen trading around 80.17 levels.

Decresed odds of RBA action

Better-than-expected Aussie CPI means more scope for Reserve Bank of Australia (RBA) to hold fire. Speculation of RBA rate cut was on the rise after last week’s labor market data showed a sharp drop in full time jobs.

However, the calls for more easing could be largely put to rest given the Q3 CPI came-in at 1.3% y/y, beating the estimate of 1.1%. RBA Trimmed mean matched estimate of 1.7%.

For now, the AUD/JPY cross I sitting above the critical psychological level of 80.00, which had proved to be a tough nut to crack in the last week. Also note that the offered tone around Aussie had strengthened yesterday near 80.00 levels.

AUD/JPY Technical Levels

Acceptance above 80.00 levels on a larger timeframe charts would signal continuation of the rally from September low of 76.00 and open doors for 81.00 (zero fiure) and 81.58 (Brexit day high). On the lower side, failure to hold above 80.00 could yield re-test of 79.67 (yesterday’s close), breach of which would open up downside towards 79.00 (zero figure) and 78.72 (Oct 21 low).