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AUD/USD down with China PMIs, but CPI points the wrong way for the RBA
Two contradictory reports wreaked a bit of havoc on the Australian dollar today, with the Aussie initially moving higher on rate-hike bets before being slammed back down thanks to weak China PMI data. Now algo’s have enjoyed their knee-jerk reactions and the dust has settled, I suspect traders will realise that today’s inflation report for Australia surely tips the RBA’s hand to hike interest rates again, even if growth prospects for China remain weak. A cursory glance at the report reveals rising prices on a monthly basis, and that is hardly what anyone wants to see with an annual rate at 6.8% y/y. RBA ... (full story)