AUD: Underlying CPI was bang on the RBA’s expectations - TDS

Sandeep Kanihama FXStreet Contributor

Research Team at TDS, notes that the Australia’s September quarter underlying CPI was bang on the RBA’s expectations so no smoking gun for a cut next week.

Key Quotes

“The annual average of the two core measures (trimmed mean + weighted median) was 1.54%/yr. While not the RBA’s policy focus, the jump in headline CPI (+0.7%/qtr vs mkt +0.5%/qtr) appears to have shaped the market’s hawkish reaction. We don’t see the RBA changing its inflation profile next week as Q3 was as expected and a slightly higher exchange rate assumption compared with August is balanced out by higher energy prices.”

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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