Australia’s November CPI (Consumer Price Index) was 2.3%, higher than the expected 2.2%, but this led to selling of the Australian dollar. Selling pressure increased because the central bank’s trimmed mean CPI slowed to 3.2% from 3.5% in the previous month. Later, some buying occurred, balancing out the movement.
The Reserve Bank of Australia (RBA) has avoided interest rate cuts and has even hinted at possible rate hikes, unlike other major countries.
Towards the end of last year, AUD/JPY remained strong, but if inflation continues to slow, expectations for rate cuts could grow, causing the Australian dollar to weaken. This will be closely watched
Expected Range for AUD/JPY: 99.20–97.80
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