Australian Dollar strengthens as hot inflation data boosts RBA rate hike bets
AUD/JPY extends its gains for the fourth successive day, trading around 111.30 during Asian hours on Wednesday. The currency cross gains support as the Australian Dollar (AUD) receives support following the release of the domestic Consumer Price Index (CPI) report.
The Australian Dollar (AUD) strengthened on Wednesday as hot inflation data bolstered expectations for a Reserve Bank of Australia (RBA) rate hike at its November meeting. The Australian Dollar (AUD) rose against the Japanese Yen (JPY) and the US Dollar (USD) following the release of Australia's Consumer Price Index (CPI) report.
The September Australian CPI inflation rate reached 4.3% year-over-year, surpassing market forecasts of 4.2%. The Trimmed Mean CPI, a key indicator of underlying inflation, also increased by 0.3% month-over-month and jumped 3.7% annually. This surge pushed inflation beyond the RBA's 2-3% target band, significantly increasing the probability of a November rate hike to 78%, up from 70% before the report.
RBA Governor Kristina Bullock stated that inflation remains too high and that overall demand continues to outpace supply, though she provided no explicit guidance on the upcoming board decision.
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Also reported by 1 other outlet
- Strong inflation sets course for RBA to hike next week macrobusiness.com.au
