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AUD/USD holds near resistance as traders await Australia CPI
RBA Governor Michele Bullock said the cash rate could be increased again if needed, but she indicated the urgency for an August hike depends on whether CPI is meaningfully hotter than expected.
AUD/USD was described as stalled near resistance ahead of Australia’s Q2 CPI release, which traders are treating as the key domestic catalyst before the Reserve Bank of Australia’s August 11 meeting, according to Action Forex.
RBA Governor Michele Bullock reiterated that the RBA’s tightening bias remains in place, saying the Board is prepared to act as required to achieve its mandate, including by increasing the cash rate further if needed, but the article said she also signaled the urgency for another near-term move has diminished.
The report framed Wednesday’s CPI data as less about whether underlying inflation stays elevated and more about whether it is hot enough to justify action in August, noting Bullock pointed to underlying inflation evolving broadly as expected since May and both housing activity and the labor market softening more than the RBA anticipated.
Market focus includes the RBA’s preferred trimmed mean measure, with consensus expecting 0.9% quarter over quarter after 0.8% previously, keeping the annual rate around 3.7%, while the comparison to the RBA’s own May forecast of 3.8% year over year was highlighted as potentially more important than the raw consensus print.