Australian dollar jumps on weak inflation

Wednesday 25 July 2018

The ABS is out with June QTR inflation and it is soft:

Take out oil and tobacco tax hikes and that is a big, fat nothing burger. Trimmed mean is not even within the RBA target band and is set to fall away.

AUD climbed to 0.745 when it should be falling (update: then it did fall).

More to come.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.