FX:AUDUSD Australian Dollar/U.S. Dollar
AUDUSD reversed all the gains prior to the CPI print this morning at 8:30 which is the first yoy deflationary number post Lehman at -.10%. Prices broke through the inverted neckline after the 8:30 data release. The RBA (Reserve Bank of Australia) is estimated at a 58% probability to cut its cash rate once again by .25% due to a slow down in emerging markets especially china. Coupled with a sell off in industrial commodity prices and a glut of supply there is certainly still a large downside in the AUD$ exchange rate.