Australian dollar (AUD/USD) marked down on lower inflation data and a big miss for Q4 GDP

The monthly inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term number (it has caveats, but I don't want to be a stick in the mud) is perhaps showing CPI has peaked, it dropped in January:

• Australian monthly CPI (January) 7.4% (expected 8.1%)

And the GDP data is here, a miss, but let's highlight this instead (back to being a stick in the mud I am):

• The GDP deflator, measure of inflation, has come in at 9.1% for the year. Ugly stuff.

AUD is lower as RBA expectations are lowered in light of the data. Don't get too carried away folks, the target band for inflation is 2 to 3% and at 9.1% (the deflator), or 7.4% (monthly) if you prefer, its still between 2.5 to 3 times higher than the upper limit of the RBA's target range.