The fall in CPI Australia with 2.8% in the third quarter to 2,7% in the fourth was a surprise to markets that involve the movement of 3%. Strengthening currencies in recent quarters partially served as a factor in the fall of the value of imported goods, especially household goods, cars and clothing. Drawdown may be temporary, particularly in connection with the potential caused by the recent floods, which strengthened inflationary pressures. After yesterday's brief rise above parity, the data is forced to release a pair of currencies, dropping Aussie below 0.9950 before to allow a bit to recover. If we look more broadly, the Aussie is still one of the worst since the beginning of the year, including those due to flooding. Interestingly, the CFTC data suggests that traders are still very optimistic about the Australian currency. It remains to be seen as justified their optimism.
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