AUD: CPI expected to have stabilized at 1.1% in Q3 - BBH

Sandeep Kanihama FXStreet Contributor

Research Team at BBH, suggests that Australia is continuing to wrestle with low inflation as the headline CPI has been trending lower and at 1.0% in Q2 was the lowest level since the late-1990s.

Key Quotes

“It is expected to have stabilized at 1.1% in Q3. The central bank puts more emphasis on the trimmed mean and weighted median measures. The trimmed mean is expected to remain at the record low matched in H1 of 1.7%. The weighted median may tick up to 1.4% from 1.3% in H1, which is also a record low.

The subdued price pressures keep many expecting another rate cut next year. For the fourth month, the Australian dollar has been largely confined to a $0.7450-$0.7750 trading range. The poor employment report reinforced the upper end, while a subdued inflation report could see it head toward the lower end of the range.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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