Australia CPI q/q comes in at 0.6% against 1.1% consensus

Australia’s Consumer Price Index, CPI q/q, for the latest quarter was reported at 0.6%. This figure came in significantly below the market consensus expectation of 1.1%. The actual print also marked a notable deceleration from the previous quarter’s 1.4% reading. The 0.6% actual result represents a -45.5% surprise relative to the consensus forecast.

Following the release, the Australian Dollar experienced broad declines against major currencies. AUDUSD fell 22 pips 15 minutes after the print. This move is comparable to the median 1-hour move of 17 pips observed after past releases, and less than the top-quarter move of 27+ pips. AUDJPY declined 38 pips within 15 minutes, exceeding its median 1-hour move of 20 pips. Conversely, EURAUD rose 46 pips and GBPAUD gained 50 pips over the same 15-minute period. These moves are approaching their respective median 1-hour moves of 38 pips for EURAUD and 45 pips for GBPAUD. Historically, the direction reliability for AUDUSD after such releases has been 61%.