{
  "id": 16877725,
  "title": "Australian Dollar outperforms as hot CPI data lifts hawkish RBA expectations",
  "url": "https://urgent.news/2026/10/28/australian-dollar-outperforms-as-hot-cpi-data-lifts-hawkish-rba",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-28T08:53:55.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/australian-dollar-outperforms-as-hot-cpi-data-lifts-hawkish-rba-expectations-202610280853"
  },
  "original_language": "en",
  "account": "The Australian Dollar (AUD) surged against its major currency counterparts on Wednesday. Against the US Dollar (USD), AUD climbed 0.15% to approximately 0.7035, despite experiencing some early losses. The AUD outperformed the New Zealand Dollar in this performance. Hot Consumer Price Index (CPI) data for September and Q3 this year's inflation figures have heightened expectations of additional interest rate hikes by the Reserve Bank of Australia (RBA) in the near future. The Month-on-Month CPI increased by 0.8%, surpassing the 0.7% forecast and the previous reading of 0.4%. On an annualized basis, inflation accelerated by 1.3% QoQ in Q3, outpacing the 0.6% growth in the April-June period. TD Securities predicts the RBA will raise interest rates a further 25 basis points to 4.85% at its upcoming meeting. Strategists argue that the stronger Q3 CPI validates the RBA's decision to hike last month, and that a forecast upgrade to the RBA's inflation expectations in the November Monetary Policy Statement likely justifies another 25bps hike next week. This hike is expected to be the final one in the cycle, indicating the tightening phase may be nearing its conclusion. The US Dollar remains ahead of the Federal Reserve's monetary policy announcement, due at 18:00 GMT. Deutsche Bank anticipates the Fed to keep monetary policy unchanged at the meeting, but expects a hawkish message, with further tightening likely in December and March. AUD/USD trades at 0.7038, displaying a mild bullish bias as the pair stays above the 20-period Exponential Moving Average (EMA) at 0.7009. The pair aims to build on its recent recovery from last week's lows, with the RSI at around 54 suggesting constructive but not overextended upside momentum. Support is at the psychological 0.7038 level, with a break exposing the 20-day EMA at 0.7009. As long as price stays above this moving average, pullbacks are seen as corrections within a recovery phase. A daily close below the EMA would challenge the current positive outlook and pave the way for a more significant retracement.",
  "summary": "The Australian Dollar (AUD) trades sharply higher against its major currency peers on Wednesday. Against the US Dollar (USD), the antipodean is up 0.15% to near 0.7035 even after giving back some of its early losses.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}