- Analytics
- News and Tools
- Market News
- AUD/USD: Decelerating inflation to dampen the aussie as reinforces RBA's dovish stance – ING
AUD/USD: Decelerating inflation to dampen the aussie as reinforces RBA's dovish stance – ING
Australian policymakers are not turning any less dovish. In the week ahead, AUD will face the test of 3Q CPI data out of Australia. Softening price pressures are set to underpin the Reserve Bank of Australia’s (RBA) dovish stance, weighing on the pound, economists at ING report.
Decelerating inflation to argue in favour of RBA dovishness
“The Reserve Bank of Australia intervened for AUD1 B on Friday to defend its 0.10% yield target on the April 2024 government security.”
“The Evergrande story in China appears to have taken a less concerning path, and this is clearly benefitting the highly exposed AUD. Still, we think there were indications that the market had already turned quite relaxed on the impact of the Evergrande debt crisis, and it seems hard to see any more significant upside room for AUD on the back of this story.”
“Markets are widely expecting a deceleration from the 3.8% 2Q figure as covid restrictions generated some deflationary pressures in late summer. Anyway, decreasing price pressures should all but underpin the RBA’s dovish stance and we think the release may prompt some re-pricing of tightening expectations (40bp priced in for the next year) and weigh on AUD.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
