Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

TOP SEARCHES

Stocks popular

Crypto

Currencies

CFD

Support

AUD Inches Down as Inflation Rises

image
icon 31/07/24
icon 136

AUD Inches Down as Inflation Rises

On Wednesday the Australian dollar has inched down and AUD/USD traded at about 0.6525, down 0.14% for the day in the North American session. The Aussie earlier fell by as much as 0.9% and dropped to a low of 0.6479 before rebounding.

There were worries that inflation in Australia was moving in the wrong direction and those fears were justified after today’s CPI release. CPI rose 3.8% y/y in the second quarter, up from 3.6% in Q1.

This was the first acceleration in inflation since the fourth quarter of 2022. Goods and services inflation both rose, as inflation across a host of components accelerated, including housing, transport, and clothing. CPI stayed steady at 1% on a quarterly basis, as per expectations.

A key core inflation indicator, the trimmed mean, eased to 3.9% from 4.0% y/y in the second quarter. Although the trimmed mean has been moving down it is still much higher than the upper level of the 1-3% target range.

The RBA has noted that a rate hike was still a possibility and the increase in headline inflation supports a rate hike. Inflation has however been up and down, and Bank policy members might elect to stall a hike, hoping for better inflation news later this year.

Recomended for you

image

Crude Prices Drop After IEA Monthly Report

On Wednesday, crude prices dropped and gave back earlier gains after the IEA reduced its forecast for this year’s demand...

May 15, 2024
icon 349
May 15, 2024
icon 349
prev next
This site is registered on wpml.org as a development site.