The Aussie is looking up. Overview for 27.01.2021
AUDUSD is not very active but still moving within the mid-term rising channel.
The Australian Dollar is quite calm against the USD but the major trend remains bullish. The current quote for the instrument is 0.7736.
The statistics published today showed that the Consumer Price Index in Australia was 0.9% q/q in the fourth quarter of 2020, which is less than the third-quarter reading, 1.6% q/q. On YoY, the indicator showed 0.9% against the expected reading of 0.7%.
The key trigger for the inflation growth was the tax increase on tobacco, as well as the expenditures on stimulating the country’s economy. In addition to that, there was a surge in expenses on children’s products and relating services in the fourth quarter of 2020, which probably happened after the government canceled its program that implied childcare subsidy.
After the program was canceled, the above-mentioned products and services went up by almost 38%, so it’s not surprising that taken together with the increased tax on tobacco they forced an inflation surge.
The Aussie is somewhat supported by the weakness of the USD, which partially compensates for th