Australian January CPI 3.8% y/y (expected 3.7%, prior 3.8%)

💡 DMK Insight

Australia’s CPI beating estimates is a game changer for traders focused on the Aussie dollar. With the RBA likely to hike rates sooner than expected, this could lead to a stronger AUD against major pairs. Traders should watch for a potential breakout above recent resistance levels, especially if the RBA signals a more aggressive stance in upcoming meetings. The immediate impact could ripple through commodity markets, particularly those tied to Australian exports like gold and iron ore. Keep an eye on the daily charts for the AUD/USD; a sustained move above key resistance could trigger further buying interest. But remember, if inflation pressures ease unexpectedly in the coming months, we might see a quick reversal, so stay nimble and monitor economic indicators closely.