The latest (sic) quarterly inflation report from the ABS has dented hopes of a higher Australian dollar following its release, with headline CPI at 0.6% for the quarter, much lower than the 0.9% expected with the yearly print also undershooting, at just above 1% instead of the 1.4% expectation.
The Aussie has fallen sharply back towards the 77 cent level versus USD after stalling overnight:
Lower inflation print hammered the Aussie dollar.
The core inflation print that the RBA is watching closely also saw a much lower print, with the trimmed mean at only 0.3% over the quarter.
Local stocks are up over 0.5% on the release as this should keep the easing pedal down for a little longer, well until tonight’s Fed meeting at least.
The full CPI release is here at the ABS: https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/mar-2021