The Australian dollar is pulling back. Market Review, July 25, 2018

In the middle of the week the Aussie is pulling back together with his American "colleague". AUD/USD is currently trading at 0.7402. Today, the most negative news for the Aussie are those statistical. In the morning, Australia issued the information according to which the Consumer Price Index for the II quarter of the current year has grown to 0.4% q/q, just as in January-March. At the same time, the indicator is falling behind on the expectations, which suggested the 0.5% inflation growth for a year quarter. This is what has "disappointed" the Aussie fans. In the year to year comparison, the level of inflation in Australia is now 2.1% which is lower that what has been predicted (2.2% y/y).

In the II quarter of 2018 the price pressure has increased so insignificantly that this has not been reflected in the statistics almost at all. The main price growth concerns those goods for which the price dynamics is conditioned by the interests of the State. Such goods are electrical energy, energy commodities and excise goods, for example, tobacco. The growth of the prices for medical services is also quite noticeable, but this is, quite likely, a temporary thing. In the clothing, shoes and consumer electronics segment, the price growth is almost not present at all.

The running inflation confirms that in April-June 2018 the prices for the major commodities practically have not changed: the inflation rate for the period under review has grown for 0,5% as it did in the beginning of the year.