Aussie Dollar is telling me inflation will abate

A decline in tonight’s (Friday) U.S. Consumer Price Index (CPI) report will help confirm my thinking that inflation will abate.

Keep in mind, that the CPI figure is a lagging reading, which is why I’m posting a chart of U.S. inflation and the AUD/USD.

You’ll notice the symbiotic relationship until lately.

The AUD not rallying along with the rate of inflation tells me inflation will abate.

I believe currency (and credit) markets before anything else.

June 10, 2022

by Rob Zdravevski

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