We had data from New Zealand earlier showing:
- Inflation pressures remain intense. Pricing intentions are gradually easing but are not yet indicating a meaningful fall in inflation.
And we have also had official CPI data from Australia, showing much higher than expected headline and core inflation:
The Australian inflation rate has hit its highest in 32 years.
Earlier this month the RBA dialled back its pace of rate hikes. It had been raising rates by 50bp in previous months but in October it was +25bp.
The RBA do expect a higher rate again for Q4. This makes today's jump in the CPI unlikely to trigger the RBA moving back to +50bp at its next meeting (November 1).
AUD/USD is dribbling off a little after a post-data spike to above 0.6400. The USD is inching higher pretty much across the majors board:
