Australian dollar hits nine-week low after CPI misses forecasts
August CPI rose 0.4% versus 0.5% expected, lifting the annual rate to 4.0%. Core inflation rose 0.2% versus 0.3% forecast.
By Wayne Cole SYDNEY, Sept 30 (Reuters) — The Australian dollar slipped to a nine-week low on Wednesday as inflation data came in just under forecasts and led markets to lengthen the odds on another rate hike, at least in the near term. The miss was marginal but gave speculators an excuse to keep selling the currency after three straight weeks of falls. 8%. 6866.
5% as drops in clothing and travel helped offset surging fuel costs. 0%, with prices up broadly. 6% for a third straight month. 60% on Tuesday.
Markets had been wagering on a hotter inflation result, so the miss was enough to see the chance of another hike in November drop to 20%, from 36% before the data. "The RBA is likely to remain in wait-and-see mode in the near term, as it looks for confirmation that disinflation will in fact take hold over the coming months," said Abhijit Surya, a senior APAC economist at Capital Economics. 100. 329% and away from 15-year peaks.
56265. 5512. 7%, partly because the Reserve Bank of New Zealand had undershot the market's very hawkish pricing for rates. Perhaps reacting to that slide, the central bank has since sounded more concerned about inflation, leading markets to price in a 70% chance of another hike in October.
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