Australian Consumer Prices Gain Less Than Forecasts

Australia’s dollar dropped, halting a two-day gain, after data showed consumer prices increased last quarter by less than economists forecast, giving the Reserve Bank scope to cut borrowing costs further.

The so-called Aussie fell against all but one of its 16 major counterparts after the Bureau of Statistics said the consumer price index advanced 0.2 percent from the previous three months, compared with the median forecast of economists in a Bloomberg News survey of a 0.4 percent increase. The trimmed mean gauge of core inflation rose 0.6 percent from the previous quarter, compared with a forecast gain of 0.7 percent.

The inflation data “does allow the RBA to ease further if it seems necessary,” said Annette Beacher, head of Asia-Pacific research for TD Securities Inc. in Singapore. “The Australian dollar has fallen on the headline just because the outcome was marginally lower than consensus.”


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.