Australian CPI lower overall; enough to increase odds for RBA cut?

FXstreet.com (Barcelona) - The Austalia Q4 trimed-mean CPI came at +0.6% QoQ vs 0.7% expected, while the YoY stood at +2.3, market expected +2.4%. The headline CPI QoQ was at +0.2% vs 0.4% expected.

According to Greg McKenna, CEO at GlobalFX: "AUD CPI 0.2% lower than expected battler under pressure as this marginally increases chances of RBA cut..."

However, as things stand, while CPI does indeed allow the RBA further room for a cut, the recovery in worldwide sentiment, coupled with the last meeting's rhetoric, in which the RBA stated that last rate decision in Decemeber was 'finely balanced', makes it difficult to believe the central bank will cut rates in the next policy meeting.

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