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Australia FX Today: The Aussie hangs on to the Consumer Price Index
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FXStreet Forex & Commodities News
The Australian Dollar (AUD) is moving cautiously on Tuesday, as markets await the release of the monthly Consumer Price Index (CPI) for August , scheduled on Wednesday at 01:30 GMT.
A bullish CPI surprise could revive expectations of a prolonged status quo from the Reserve Bank of Australia (RBA), or even a return of upward risk to interest rates.
In his view, even though electricity weighed heavily, all components show a resumption of price pressures, which "constitutes a significant acceleration in underlying inflation".
A mixed reading for economistsFrom the Commonwealth Bank of Australia, Harry Ottley remains more measured: "Monthly CPI is by nature volatile, and the RBA prefers a broader reading on a quarterly basis".
From November 2025, Australia will officially adopt monthly CPI as its main inflation measure, replacing the traditional quarterly indicator.
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