The aussie is boosted by better-than-expected Q2 CPI data earlier
The data saw headline inflation notably improve relative to Q1 but trimmed mean inflation (the RBA's preferred measure) remained steady but beat out expectations. That saw rate cut bets scaled back a little but in the big picture I reckon it doesn't change much.
Inflationary pressures continue to sit below the RBA target band of between 2% and 3% and hasn't moved to within the band since Q4 2015. That should put things into perspective into what the data means in the grand scheme of things.
Nonetheless, the aussie is leading via near-term gains on the data while the kiwi is the laggard as it is weighed down by yet another weak business survey.
The rest of the major currencies bloc remains more steady with narrow ranges prevailing and less than 0.1% change against the dollar. All eyes are on the Fed today so I would expect markets to be a bit more tepid ahead of the decision by the US central bank.
