AUD/UD mixed and volatile on Aussie data

By FXStreet FXStreet (Guatemala) – AUD/USD sold off heavily on the release of the miss in retail sales for December and was then rescued on a conflicting statement on monetary policy.

AUD/USD met highs at the 200 sma on the five minute sticks at 0.7211 and plummeted to 0.7176 the low so far on the same time frames before recovering back to the 0.72 handle. The data is being monitored by the RBA who have started to be more vigilant in respect to global negative headwinds for the Australian economy and will monitor data such as this ahead of their subsequent RBA meetings.

A continuation of such lack luster activity in the consumer space will not bode well for the inflation outlook and while the current CPI’s are withing the RBA’s preferred band, they are at the bottom of that bracket and over time ahead the Central Bank could find themselves looking at needing to cut interest rates.

However, for the time being as per statement, the RBA are not leaning on a dovish foot as of yet and only noted that soft inflation could equal further easing. Jobs growth is seen strong enough to push jobless rate lower …read more

Source:: FX Street