Aussie dollar rises on strong CPI print
The Australian dollar strengthened to around $0.661 on Wednesday, after a muted session in the previous day, as investors digested a stronger-than-expected rise in August consumer prices.
The data showed headline inflation accelerating at the fastest pace in a year, though core inflation eased, highlighting mixed price pressures.
The figures kept expectations intact for the Reserve Bank of Australia to leave rates unchanged at 3.6% in its September meeting, while the chances of a November rate cut eased to 60% from 70% before the release.
Policymakers have consistently downplayed the monthly CPI series, citing its volatility, and prefer to base decisions on quarterly figures.
Governor Michele Bullock earlier this week signaled confidence that inflation is on track to return to target as the labor market remains resilient.
Taken together, the data suggested little urgency for immediate action, reinforcing the central bank's cautious stance on policy adjustments in the near term.
UCapital Asset Management LLP or group companies may have commercial relationships with the companies mentioned. This content is not financial advice.
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