AUD/USD has dropped after the better than expected Q4 inflation data from Australia

The data is here, mainly lower than Q3, lower than market expectations, and lower than RBA projections.

• Australian Q4 2024 inflation headline 2.4% y/y (expected 2.5%)

A very satisfactory trifecta indeed.

Australian government
subsidies helped put a lid on costs. Nevertheless, a slowdown in core
inflation is fuelling speculation of a cut in interest rates
as early as next month. The Reserve Bank of Australia meet on February 17 and 18.

AUD/USD marked lower:

This is a one minute candle chart, so if you are lying in bed it’ll give you a bit of picture of what happened after the data.

If you are lying in bed, go to sleep or you’ll be grumpy tomorrow and do revenge trading. AmIright or amIright?

This article was written by Eamonn Sheridan at www.forexlive.com.