Australian Dollar Declines on the Back of Inflation Data Overview 26.07.2017

The Australian dollar is declining in the morning on Wednesday. Currently it holds at 0.7885. The statistics released today showed the Australian consumer price index q/q has risen by 0.2% only in Q2 while the expected value was 0.4% and previously registered index turned out to be 0.5%. The year-on-year index appeared at +1.9% level while the previous value was 2.1%. The report's details show the biggest growth was registered in public health sector in April-May period. Prices in several retail sectors and energy prices have fallen.

The overall tendency on inflation is still in its downtrend - there are many major players on grocery and non-food markets, and this urges to cut the prices down to retain customers.

At the moment the Aussie is declining, but during the 2nd half of the day the Fed's meeting will attract attention of all the market players. This time no usual press-conference is scheduled, but the market awaits comments on when Fed is going to start selling bonds which have been accumulated since start of QE program. The more clear details are released, the better for US dollar.