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Australian CPI cools core trimmed mean, pressuring AUD

Australia’s August trimmed mean rose 0.2% m/m, below the 0.3% forecast, reinforcing expectations that the RBA may not need an additional hike soon.

Reported · Written up by our desk · EM Currencies

Australia’s consumer price inflation rose 4.0% year over year in August, in line with expectations, with fuel driving the increase, according to Forexlive.

The monthly trimmed mean, a core measure, rose 0.2% month over month versus a 0.3% forecast and held at 3.6% year over year, a result investors viewed as a more encouraging signal for inflation.

Forexlive added that the Australian dollar fell after the data, and that markets were pricing only about a 25% chance of an RBA hike in November, even though the RBA had raised rates to 4.6% the day prior.

The article said the main currency risk is continued pressure from fuel costs, with diesel prices flagged as a key watch point because of how widely they feed through the economy.

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