AUD/USD extending its losses after lower inflation data

<p>The very welcome lower inflation data is here:</p><ul><li><a href="https://www.forexlive.com/news/australian-q4-headline-cpi-41-yy-vs-43-expected-20240131/" target="_blank" rel="follow" data-article-link="true">Australian Q4 headline CPI 4.1% y/y vs 4.3% expected</a></li></ul><p>The Reserve Bank of Australia target band is 2 – 3 %, so there is still work to be done, the Australian Treasures agreed:</p><ul><li><a href="https://www.forexlive.com/centralbank/treasurer-of-australia-chalmers-says-lower-inflation-welcome-but-job-not-yet-complete-20240131/" target="_blank" rel="follow" data-article-link="true">Treasurer of Australia Chalmers says lower inflation welcome but job not yet complete</a></li></ul><p>Following the data market pricing has shifted to price in a 25bp rate cut in August (from September). </p><p>A cut as early as May is a coin-toss. </p><p>AUD/USD has slipped further, circa 0.6575 as I update. </p><p>RBA meetings scheduled for this year are as follows, the schedule is significantly different to the 'first Tuesday of the month' meetings prior to this year. Reserve Bank of Australia Governor Bullock will also hold a press conference after, another new development.</p>

This article was written by Eamonn Sheridan at www.forexlive.com.