AUD/USD bulls are looking for the doji close followed by a bullish engulfing By ross_burland AUDUSD CPI RBA Fed China
kyo at 0.7190. The Consumer Price Index outcome means that a rate hike from the Reserve Bank of Australia is coming sooner and faster than what markets had thought, yet a challenging external environment has continued to weigh on the Aussie nonetheless.
''We now expect the RBA to hike by 15bp next week. Inflation pressures have momentum and have broadened. A cash rate target of 0.1% is inappropriate against this backdrop,'' analysts at ANZ Bank argued. AUD/USD price analysis around CPIhad been forming a bullish reverse head & shoulders ahead of the data as follows:
Propelling the greenback further are the economic growth concerns in Europe after Russia cut off gas supplies to parts of the region. Russia's Gazprom halted gas supplies to Poland and Bulgaria on Wednesday over their failure to pay in roubles, cranking up an economic war with Europe in response to Western sanctions imposed for Moscow's invasion of Ukraine.
''More restrictions in China imply a fresh test for global supply chains. At the start of this week, the unleashing of fresh growth concerns, spooked stock markets and triggered another round of demand for safe-haven assets,'' the analysts added. ' ''As was the case last quarter, inventories will play a large role though they will be a drag instead. That said, domestic final sales likely continued to strengthen on the back of firming consumer spending. The inflation parts of the report will likely show acceleration.''and a correction from the weekly support structure could be in order:
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