Australian Dollar: Softer CPI keeps RBA pricing in check – BBH

Elias Haddad at Brown Brothers Harriman notes the Australian Dollar is underperforming after a softer August CPI print weighed on RBA cash rate futures. Headline CPI rose less than consensus, while trimmed mean inflation remained steady for a third month. This weaker-than-expected inflation profile dampens expectations for further RBA tightening and leaves AUD lagging peers in the near term.

Weak inflation pressures australian dollar

"AUD is underperforming after the softer monthly rise in Australia’s CPI weighed on RBA cash rate futures."

"In August, headline CPI rose 0.4% (consensus: 0.5%) to be up 4.0% y/y (consensus: 4.1%, prior: 3.5%), while trimmed mean CPI increased 0.2% m/m (consensus: 0.3%) to remain at 3.6% y/y for a third straight month."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)