Breaking: Australian inflation, CPI, beats expectations and sends AUD on a tear

Australia’s critical first quarter Consumer Price Index data is out and the data has beaten expectations, lifting AUD higher towards a key resistance target on the hourly chart. 

The data is key because the Australian central bank has dropped its patient stance and announced monetary policy would be data-dependent.

Australian quarterly inflation was expected to surpass the upper end of the RBA’s target.

Aussie CPI

Q1trimmed mean cpi +1.4 pct q/q (Reuters poll +1.2 pct).

Q1 cpi (all groups) +2.1 pct q/q (Reuters poll +1.7 pct).
Weighted median cpi +1 pct q/q (Reuters poll +1.1 pct).

Trimmed mean cpi +3.7 pct yr/yr (Reuters poll +3.4 pct).

Australia q1 cpi (all groups) +5.1 pct yr/yr (Reuters poll +4.6 pct).

More to come...

On the hourly chart, AUD/USD had been forming a bullish reverse head & shoulders ahead of the data as follows:

This is a reversal pattern and the neckline of the prior M-formation near 0.7180 could be targetted for the day ahead.  The outcome has triggered a bid, so this validates the chart pattern. 

About CPI

The Consumer Price Index released by the RBA and republished by the Australian Bureau of Statistics is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services . The purchase power of AUD is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. A high reading is seen as positive (or bullish) for the AUD, while a low reading is seen as negative (or Bearish).