Australia's second quarter Consumer Price Index data has been released and markets are focused on the outcome in anticipation of the Reserve Bank of Australia's next move. 

The data has arrived as follows:

1.8% QoQ (expected 1.8%), Trimmed mean 1.5% (expected 1.5%) QoQ.

• Australia CPI QoQ Q2: 1.8% (est 1.9%, prev 2.1%).
• CPI YoY Q2: 6.1% (est 6.3%, prev 5.1%).
• CPI Trimmed Mean YoY Q2: 4.9%  (est 4.7%, prev 3.7%).
• CPI Trimmed Mean Q0Q Q2: 1.5% (est 1.5%, prev 1.4%).

Traders were looking for a significant beat given ongoing upside inflation surprises globally that could see the RBA move 75bp in August. However, this will cement the sentiment of just a 50bps hike and for that, the Aussie is offered. 

AUD/USD update

Prior to the data, AUD/USD had formed a W-formation on the daily chart which is a reversion pattern and the price was yet to restest the neckline near 0.6850:

The data will potentially result in a lower AUD over the course of the week and the support will be in focus. 

About Aussie CPI

The Consumer Price Index released by the RBA and republished by the Australian Bureau of Statistics is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchasing power of AUD is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. A high reading is seen as positive (or bullish) for the AUD, while a low reading is seen as negative (or Bearish).