Knowledge from the Australian Bureau of Statistics (ABS) confirmed that inflation in Australia maintained its 1.0% quarterly development in Q2 2024, which was led by worth will increase in meals, clothes, and alcohol and tobacco merchandise.

Yearly, worth will increase had accelerated from 3.6% to three.8% in Q2 in comparison with the earlier yr, and marked the primary improve since This autumn 2022.

Different CPI measures weren’t as hawkish:

RBA’s trimmed imply CPI (q/q): 0.8% (0.9% forecast, 1.0% earlier)
RBA’s trimmed imply CPI (y/y): 3.9% (4.0% forecast and former)

RBA’s weighted median CPI (q/q): 0.8% (1.0% forecast, 1.1% earlier)
RBA’s weighted median CPI (y/y): 4.1% (4.3% forecast, 4.4% earlier)

Hyperlink to ABS Q2 2024 CPI Report

In a separate launch, Australia’s June CPI got here in at 3.8% in comparison with a yr in the past, slower than the anticipated 3.9% uptick and Might’s 4.0% development.

The report famous the numerous worth will increase for housing (+5.5%), meals and non-alcoholic drinks (+3.3%), alcohol and tobacco (+6.9%), and transport (+4.2%) costs.

Excluding unstable gadgets, costs had maintained their 4.0% development in Might, whereas the annual trimmed imply inflation cooled from 4.4% to 4.1% in June.

Hyperlink to ABS June CPI Report

Australian greenback vs. Main Currencies: 5-min

Overlay of AUD vs. Main Currencies Chart by TradingView

Whether or not it was threat aversion or profit-taking forward of the CPI report, the Australian greenback had been dropping pips in opposition to its counterparts forward of the particular occasion.

Then, AUD dropped sharply throughout the board on the studies’ releases.

Whereas headline CPI information maintained their development or barely edged decrease, the decelerations within the closely-watched RBA trimmed imply CPI have been sufficient for the markets to invest that the Reserve Financial institution of Australia (RBA) can meet its inflation targets with out requiring additional tightening.

The Australian greenback stayed close to its Asian session lows for about half-hour or so earlier than seeing extra sustained shopping for (probably pullback) strain.