Australian RBA's Quarterly CPI Preview: Aussie has limited bullish potential ahead of next RBA meeting

Australia will release Q3 inflation figures on Wednesday, October 28 at 00:30 GMT and the quarterly CPI is seen recovering after record lows in Q2. Investors are cautious as the Reserve Bank of Australia (RBA) paved the way for a fresh rate cut while the AUD/USD pair is technically neutral above the critical 0.7000 threshold, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“The quarterly CPI is expected at 1.5%, quite a recovery from the previous -1.9%. When compared to a year early, it is expected to recover from -0.3% to 0.7%. The Trimmed Mean CPI from the RBA is expected at 0.3% QoQ from -0.1%, and at 1.1% YoY from 1.2% in Q2. A significant improvement that falls short of RBA’s 2-3% target band.”

“Should the numbers miss the market’s expectations, a cash rate cut to 0.1% could be taken for granted for the upcoming meeting, on November 4, with AUD/USD probably falling towards the 0.7000 figure.”

“Despite the RBA paved the way for a rate cut, policymakers’ perspectives are generally positive. They keep reaffirming that the economic slowdown was not as bad as initially estimated. In this scenario, upbeat figures could provide support to the Australian dollar. Still, the aussie has a limited bullish potential, amid caution ahead of the next RBA meeting.”


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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD hits fresh two-month highs amid dollar weakness

EUR/USD has hit new two-month highs above 1.1940 as the dollar resumes its decline. Optimism about the US transition and covid vaccines is weighing on the safe-haven dollar. 


GBP/USD falls toward 1.33 amid Brexit acrimony

GBP/USD is falling toward 1.33 as both the EU and the UK are busy blaming each other for an impasse in Brexit talks. The thorny issues remain fisheries, governance and setting a level playing field.


XAU/USD attempting to bounce up from $1,775 low

Gold futures accelerated heir downtrend from last week highs near $1,900, breaking below the 200-day SMA, at $1,800 area, to hit its lowest prices in nearly five months, at $1,775.

Gold news

Dollar offered ahead of the weekend

Equities are finishing the week on a firm tone, while the US dollar remains heavy. In the Asia Pacific, only Australia and India did not end the week on a firm note.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info