AUD/USD eyes resistance at 0.7139/80 after above forecast CPI quells talk of RBA pause – SocGen

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AUD/USD builds gains after Australia’s Consumer Price Index (CPI) Q4 surpassed the consensus forecast. Economists at Société Générale expect the pair to extend its race higher.

Continued rise in inflation supports RBA’s monetary tightening

“Inflation in Australia accelerated to a 32-year high of 7.8% from 7.3% in Q3. The core rate or trimmed mean jumped to 6.9% from 6.1%. Not the time for the RBA to pause next week. This should reinforce the uptrend for AUD/USD.”

“Resistance is situated at 0.7130/70.” 

See: AUD and NZD to consolidate before strengthing through the remainder of the year – CIBC