Today, we’ve seen Australian CPI data that presents a mixed picture, though it largely sits within the Reserve Bank of Australia’s (RBA) target range. This situation could signal a potential bearish shift for the AUD/JPY, as the anticipation of rate cuts remains unchanged amidst a generally grim mood in risk sentiment this week.
The headline inflation came in at 2.3%, slightly above the expected 2.2%, while the trimmed mean dropped to 3.2% from 3.5%. Despite these figures, the data hasn’t been robust enough to shift market expectations, with RBA rate cuts possibly beginning as soon as February.
Let’s dive into how one might theoretically craft a trade plan based on these developments.
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