AU CPI - Trimmed Mean [q/q]
The consumer price index of Australia is published in two versions: basic and trimmed mean, the latter is our trading interest, as it reflects the core of the data and most importantly it is published first!
Features of the publication
How to trade AU CPI - Trimmed Mean [q/q]
If the data exceeds the forecasts, then AUDUSD grows. If the AU CPI (Q/Q) and AU CPI-Trimmed Mean (Q/Q) data are shown in one direction, the movement may be quite strong.
Your main attention should be drawn to such key points:
- AUCPI – Trimmed Mean (Q / Q) is published first
- The report comes with a classic Australian delay (this aspect is well described in the Australian labor market indicator, by clicking this link you will find explanations on this issue)
- The synergy of two packet indicators is required by strong movements
The indicator is highly sensitive to sentiments and moods towards the Reserve Bank of Australia: it can be used on extra small triggers for trading at times when the RBA is going to change the interest rate, and it cannot be used when it does not even think about it!
Quarterly report means additional interest from traders.
As a rule, the target level of inflation of the RAB is in the range of 2%-3%.
We are always interested in the indicator which published first (in the time aspect) and it is the core of the consumer price index. The overall index will be published next in 1-2-4-5 seconds. The probability of conflict between them is small but it may be present in the case of excessively small deviations. Even this is not about the conflict but about whether the secondary indicators will support the main one: it's one thing to see -0.1% deviation in the base supported by -0.1% in general and it’s quite another thing not to see the support from the overall indicator, taking into account the probability of an Australian delay here. It is a significant factor affecting your effectiveness.
Do you want we scare you a little more? In fact, the data package for Australian inflation is as follows:
CPI - Trimmed Mean (Q/Q)
CPI - Trimmed Mean (Y/Y)
CPI - Weighted Median (Q/Q)
CPI - Weighted Median (Y/Y)
The more equal the data, the stronger the movement. The more versatile the package delivery, the higher the probability that the primary movement will stop or go back. It is necessary to remain extremely careful!
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