Select Language

Australian inflation back in target range - Commerzbank

Breaking news

Australian inflation back in target range - Commerzbank

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2024.10.29 22:35
Australian inflation back in target range - Commerzbank

update 2024.10.29 22:35

Late tonight (or early tomorrow morning, depending on your perspective) Australia will release its Q3 inflation figures. This will be the prelude to next week's meeting of the Reserve Bank of Australia (RBA). And what the markets will see tomorrow is likely to please the central bankers, Commerzbank's FX analyst Volkmar Baur notes.

Lower inflation can lead to AUD weakness in the short term

"The majority of analysts expect an annual inflation rate of 2.9% in the third quarter. In my view, however, the risk is more to the downside. For the month of September, the rate could even be around 2.3%. While the quarterly rate has probably returned to the target range of 2-3%, the monthly rate is therefore likely to have ended up even below the implicit target of 2.5%."

"But while all of this is likely to please central bankers, it is unlikely to persuade them to cut rates next week. Although the lower inflation rate meets one of the conditions for a rate cut, the Reserve Bank of Australia still sees the risk to inflation as being on the upside, with the labour market still very strong and wage growth still too high."

"For the Australian dollar, this means that lower inflation, especially if it surprises to the downside, could lead to weakness in the short term. In this case, the market would certainly consider the possibility of an earlier RBA rate cut. However, the weakness is likely to be short-lived as I do not expect the RBA to cut rates next week."


Date

Created

 : 2024.10.29

Update

Last updated

 : 2024.10.29

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

Japanese Yen advances to multi-week top against USD amid trade war concerns

The Japanese Yen (JPY) continues to attract some haven flows in the wake of US President-elect Donald Trump's tariff threats.
New
update2024.11.27 12:06

USD/INR edges higher on Trump's tariff plans

The Indian Rupee (INR) extends its decline on Wednesday. The expectation that Donald Trump might impose high tariffs on imports into the US provides some support to the US Dollar (USD) and weighs on the local currency.
New
update2024.11.27 11:44

RBNZ's Orr: Projections consistent with 50 bps in Feb depending on activity

Reserve Bank of New Zealand's (RBNZ) Governor Adrian Orr explains the interest rate decision at a press conference following the monetary policy meeting on Wednesday.
New
update2024.11.27 11:09

Australian Dollar rises following the RBNZ 50 bps interest rate cut

The Zealand Dollar (NZD) breaks its five-day losing streak against the US Dollar (USD) following the Reserve Bank of New Zealand's (RBNZ) interest rate decision on Wednesday.
New
update2024.11.27 10:40

PBOC sets USD/CNY reference rate at 7.1982 vs. 7.1910 previous

On Wednesday, the People's Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead at 7.1982, as compared to the previous day's fix of 7.1910 and 7.2535 Reuters estimates.
New
update2024.11.27 10:20

AUD/NZD dives to one-week low, around 1.1030 after RNBZ's expected 50 bps rate cut

The AUD/NZD cross attracts heavy selling after the Reserve Bank of New Zealand (RBNZ) announced its policy decision and dives to a one-week low, around the 1.1030 region during the Asian session on Wednesday.
New
update2024.11.27 10:18

Australia's monthly CPI inflation steadies at 2.1% YoY in October vs. 2.3% expected

Australia's monthly Consumer Price Index (CPI) rose by 2.1% in the year to October, compared to a 2.1% increase seen in September, according to the data published by the Australian Bureau of Statistics (ABS) on Wednesday.
New
update2024.11.27 09:34

Trump to name Jamieson Greer as US trade representative - Bloomberg

US President-elect Donald Trump is expected to name Jamieson Greer as the US Trade Representative, according to Bloomberg on Tuesday, citing sources.
New
update2024.11.27 09:24

BoE's Lombardelli: More evidence needed before next rate cut

Bank of England (BoE) Deputy Governor Clare Lombardelli said on Tuesday that she needs to see more evidence of cooling price pressures before she backs another interest rate reduction, per Bloomberg.
New
update2024.11.27 09:15

WTI recovers above $68.50 on a large surprise crude draw

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $68.75 on Wednesday.
New
update2024.11.27 09:03

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel