Australia's monthly CPI indicator suggests more moderate inflation
Australian inflation data for November caught the eye of investors on Wednesday。Following Tuesday's retail sales data, inflation remaining unchanged could delay the RBA's discussion of a rate cut and keep the possibility of a rate hike on the table。
Key points:
- Australia's November inflation is softer than expected。
- The upward trend in household spending could again drive demand-driven inflationary pressures.。
- In Wednesday's trading, the Fed's comments need to be taken into account.。
Australia's monthly CPI indicator:
Australian inflation data for November caught the eye of investors on Wednesday。Following Tuesday's retail sales data, inflation remaining unchanged could delay the RBA's discussion of a rate cut and keep the possibility of a rate hike on the table。
However, the annual inflation rate increased from 4.9% down to 4.3%。Economists predict inflation of 4.4%。
According to the Australian Bureau of Statistics,
The biggest contribution to inflation comes from housing, food and drink。Housing prices rise 6.6%, food and beverage prices 4.6%。Alcohol and tobacco (+ 6.4%) and insurance and financial services (+ 8.8%) also contributed to the annual inflation rate。
Housing: New home prices up 5 YoY.5%, compared to 4 in October.7%。Rents up 7.1% (6 in October.6%)。
ELECTRICITY AND GAS: ELECTRICITY PRICES RISE 10.7% (10 in October.1%), gas and other household fuel prices rose 12.9% (13 in October.0%)。
AUTO FUEL: AUTO FUEL PRICES UP IN NOVEMBER 2.3%, down from 8 in October.6%。
RBA may look at trends in household spending despite lower-than-expected inflation data。The continued upward trend in retail sales could again drive demand-driven inflation and force the RBA to keep the possibility of a rate hike。
AUD / USD reaction to monthly CPI indicator
Aussie dollar falls to 0 before inflation data.A low of $66,786, then rose to 0.High of $66877。
However, in reaction to the inflation data, the Australian dollar fell to zero against the US dollar..$66,828 low, then rose to 0.High of $66950。
On Wednesday, the Australian dollar rose 0.04% to 0.66891 USD。
Later Wednesday, U.S. mortgage rates and a Fed spokesman will be of interest to investors.。The downward trend in U.S. mortgage rates will support consumer confidence and consumer spending.。Upward trend in consumer spending could affect timing of Fed rate cut。
However, investors must consider the Fed's discussions。Federal Reserve Vice Chairman John Williams will speak on Wednesday。Perceptions of US jobs report, inflation and interest rates will be of concern to the market。
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