Australia’s July CPI print is expected to slow to 3.3%, reinforcing expectations the RBA will leave rates unchanged this year.
Australia’s July inflation data, due at 02:30 BST tomorrow, is forecast to show headline CPI easing from 3.8% to 3.3%. The trimmed mean, a key focus, is expected to dip modestly from 3.6% to 3.5%.
The Reserve Bank of Australia has maintained a hawkish stance, though markets price only a 50% chance of a hike by year-end. Even a slight inflation surprise could align market expectations with Governor Michele Bullock’s rhetoric, supporting the AUD.
Analysts remain constructive on AUD/USD, targeting a move above the May highs of 0.7260-0.7270 before year-end, citing strong fundamentals and attractive carry.