AUDCHF Trade idea
Consumer inflation in Australia eased more than expected, according to data released on Wednesday, dampening hopes of another rate hike by the Reserve Bank of Australia next week and putting further downward pressure on the Australian dollar.
Expectations of an increase in interest rates by the Australian central bank have dropped from 60% to 30% two weeks ago. Also, at the moment, the position of retail traders is more than 90% in the purchase period, which indicates more downward movements, on the other hand, it follows the announcement of the fifth consecutive increase in the interest rate by the Swiss Central Bank and a sign of a possible increase in the rate in the future to deal with inflationary pressures.
Despite the downward revision of the inflation forecast for 2023, the central bank has increased its forecast for the inflation of 2024 due to the effects of the second round of electricity price increases, rent increases, and continuous inflationary pressures from international sources. The AUDCHF currency pair remains bearish, but this currency pair is in a tight bearish position and can be suitable for selling if it recovers to higher levels. 0.6050-0.6067 could be low-risk levels to enter a short position. if you are a scalper trader, 0.601 is yours.