• Lower than expected headline Australia inflation leaning on the Aussie

• Govt tax cuts on fuel impacting CPI: core CPI ticked higher on higher oil prices

• Softer headline infl and a surprise jump in the jobless rate, a 4 1/2 year high

• RBA could be justified in moving away from its hiking stance

• Market is still looking for one more hike to 4.6% but could be more balanced

• AUD/USD topped out at 0.7182 Mon, slipped Tues and drops to 0.7136 Wed

• Range top now defined by the 20-day moving average, today at 0.7187

• Converged 50-day moving average and the lower 20-day Bollinger: 0.7102-0.7103
AUD/USD daily chart:


(Peter Stoneham is a Reuters market analyst. The views expressed are his own)