The Australian Dollar (AUD) slumped to 0.6170 in the late NY session Friday against the US Dollar (USD) before reversing losses back to 0.6300 levels around mid-morning. US CPI slowed for the 3rd month running, releasing at 8.2% for September representing the lowest in 7 months compared to August’s 8.2%. Equity markets dropped over 2% on the release before rallying back to close the day up 2-3% across the major indices. Core CPI rose 6.6% from 6.3%, other than lower vehicle and apparel prices there was little else suggesting inflation is being tamed. The rally back from 0.6170 left everyone wondering what on earth just happened. Perhaps purely technical, we do have a support line drawn on our chart representing Feb 2020 lows. By the USD Dollar on the spike.
The current interbank midrate is: AUDUSD 0.6303
The interbank range this week has been: AUDUSD 0.6168- 0.6378