Aussie was the standout performer in the Asia-Pacific timezone today as it reacted strongly to a higher-than-expected Q4 CPI number. Aussie-dollar opened at $0.8806 and briefly slipped to $0.8802 following the release of the Westpac-MI consumer sentiment index for January. The pair rebounded when details of the survey were read as being not as bad as expected, reaching $0.8813. Aussie-dollar consolidated near the morning lows of $0.8788 a few minutes before the CPI data were released but rallied sharply after the data came in higher than anticipated. Aussie-dollar cleared out offers at $0.8850 on the way up and then attempted to take on more offers toward $0.8880 before stalling at a high of $0.8874. The pair was last at $0.8863, with those rumored offers believed to still be in place, stretching up to $0.8900. Looking ahead, aclose above $0.8885 is needed to relieve the immediate bearish focus with a close above the $0.8971 level needed to shift focus back to the recent $0.9085 highs and away from the $0.8068 2010 low which is targeted overall.
