AUD/USD: data on inflation in Australia for the second quarter. 26/07/2016

Technical analysis and trading recommendations - https://fxpcm.com/en/fx/audusd-data-inflation-australia-second-quarter-26072016
With the opening of today's trading day, the Australian dollar was trading higher, mainly due to the fact that traders closed short positions ahead of tomorrow's publication of inflation data.
Tomorrow at 01:30 (GMT) will be published important data on inflation in Australia in the second quarter (the consumer price index, core inflation index). If inflation in the 2nd quarter will be lower, the RBA may go for rate cuts in August (RBA meeting on the subject held on August 2).
Now the rate is at 1.75%. And the probability of reducing the official interest rate RBA next month (Aug. 2). The estimated market interest rate swaps at 70%.
Earlier on the RBA statement was made that the consumer price index (CPI) will show whether there is a need for lowering interest rates next month.
Last time the central bank lowered the rate in May, after a weaker-than-expected inflation rate for the 1st quarter data.
According to economists, if the quarterly core inflation will be tomorrow at the level of 0.4% is forecast, this implies an annual inflation of 1.4%. This will be a record low value.
Then inflation data confirm that its return to the desired RBA target range is 2% -3%, will only happen through the years, and it will give the central bank managers to apply stimulus measures.
Lowering the interest rate, which is currently 1.75%, will lead to a drop in the Australian dollar, including in the pair AUD / USD.