AUD Tightens Ahead of CPI: Where Will the RBA Go?
The Australian dollar remained steady around 0.65, moving in a narrow range near a two-month low. The market awaits the release of the quarterly CPI next week, which could change the RBA's policy direction. Current forecast: headline inflation breaks through 3 percent (the upper end of the 2-3 percent target), with core inflation expected to remain stable. After an unexpected spike in unemployment in September, the odds of a 25 bps interest rate cut have jumped—from around forty percent to approximately seventy percent.
Today, market eyes are on RBA Governor Michele Bullock's speech for further signals. Preliminary PMI data showed that factories contracted again for the first time this year, while services actually strengthened in October. Despite the mixed results, the AUD remains on track for a slight increase this week, helped by improving global trade sentiment—including the critical US-Australia minerals pact.
Source: Newsmaker.id
