AUD/USD grinding steadily higher after the Q3 CPI today, which initially saw selling to the session low of $0.8747 but a quick rally soon after, as the trimmed mean missed to the downside slightly, but the headline and weighted median were up on expectations. In all, the data reinforces the RBA’s “on hold” position with the trimmed mean year on year right in the middle of the RBA’s target range for the cycle at 2.5%. Some pension fund buying later in the session as Asia took the currency back towards $0.8800, but noted selling there has capped the rally. A high of $0.8799 today, with bids below seen at $0.8740/50, then closer to $0.8700, sellers above at $0.8830/40, $0.8900 and good sized stops above that.
