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28 Jan 2015
Australia trimmed CPI in range, diminishing outlook for rate cut – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team shares that Australia’s trimmed core CPI levels head above the central bank’s target range, diminishing the outlook for a rate cut by the RBA, with AUD/USD rising briefly to test the 0.80 handle.
Key Quotes
“Australian dollar - one of the biggest victims to the 7-month-old USD advance - got some temporary relief from today's quarterly inflation figures. With the case for renewed RBA easing as early as next meeting in early February, the trimmed mean (core) levels held above the 2% floor of the central bank's target range, even though the headline CPI fell to new 2-year lows.”
“ABS noted that most significant price rises this quarter were for domestic holiday travel and accommodation, while fuel and electronics showed predictable outsized declines. A research note from CommSec said "It is pretty clear that inflation is not a threat to the domestic economy, meaning that the Reserve Bank can comfortably keep interest rates at exceptionally low levels over the medium term”.”
“Separately in Australia, Westpac leading index registered a flat December, as resident researcher noted "Australian economy looks set to continue recording below trend growth well into 2015”."
“Skilled vacancies fell further, potentially signalling a slightly tighter labor market.”
“AUD/USD rose nearly 100pips in the wake of the CPI figures, briefly testing the $0.80 mark.”
Key Quotes
“Australian dollar - one of the biggest victims to the 7-month-old USD advance - got some temporary relief from today's quarterly inflation figures. With the case for renewed RBA easing as early as next meeting in early February, the trimmed mean (core) levels held above the 2% floor of the central bank's target range, even though the headline CPI fell to new 2-year lows.”
“ABS noted that most significant price rises this quarter were for domestic holiday travel and accommodation, while fuel and electronics showed predictable outsized declines. A research note from CommSec said "It is pretty clear that inflation is not a threat to the domestic economy, meaning that the Reserve Bank can comfortably keep interest rates at exceptionally low levels over the medium term”.”
“Separately in Australia, Westpac leading index registered a flat December, as resident researcher noted "Australian economy looks set to continue recording below trend growth well into 2015”."
“Skilled vacancies fell further, potentially signalling a slightly tighter labor market.”
“AUD/USD rose nearly 100pips in the wake of the CPI figures, briefly testing the $0.80 mark.”