Aussie CPI - anyone planning to trade on the back of this?
Remember what the RBA minutes read:
"Members also discussed the scenario where inflation did not move any higher and unemployment trended up, noting that a decrease in the cash rate would likely be appropriate in these circumstances."
We had unemployment trend up already and if the CPI numbers come out to be lower then that will match RBA's criterion, right? Will all traders also be thinking the same way?
I know we also had an increase in the participation rate which drove unemployment AND employment higher at the same time so I don't know if that counts for what the RBA was thinking???
Regardless, AUD has been rolling over since yesterday and if we are to follow the trend then getting short AUDUSD makes sense to me.