Australia: CPI on track for the RBA – TDS
|Australia’s Q2 core CPI rose by +0.5%/qtr and +1.8%/yr as widely expected (mkt 1.75%, TD 1.82%) and entirely consistent with the RBA’s projection of 1¾%/yr by midyear, and on track to reach 2%/yr by year end, notes the analysis team at TDS.
Key Quotes
“The AUD initially sank on the softer headline CPI print of +0.2%/qtr and +1.9%/yr (mkt +0.4%/qtr, +2.2%/yr). However, as this is not the RBA’s focus, AUD weakness is unlikely to be sustained.”
“As core inflation continues to slowly grind higher from the 2016 low of 1.5%/yr, and we see higher wage inflation in due course, we see the timing of the RBA’s first hike being closer to May 2018. OIS is fully priced for +25bp by September 2018.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.