Australian dollar dips as monthly CPI falls short of expectations

<p>The Australian dollar had dribbled a little lower heading into the CPI data and it dipped a little more in response to the lower than was expected headline:</p><ul><li><a href="https://www.forexlive.com/news/australian-monthly-cpi-for-october-2023-49-yy-vs-expected-52-20231129/" target="_blank" rel="follow" data-article-link="true">Australian monthly CPI for October 2023 4.9% y/y (vs. expected 5.2%)</a></li><li>Headline lower than expected</li><li>The core measure, underlying inflation, 'trimmed mean' was still 5.2%, down from 5.3% in September</li><li>October data had a large 'goods' representation compared with services so it may be lower than it otherwise would have been</li></ul><p>But enough of the caveats, a December (meeting on the 5th) rate hike from the Reserve Bank of Australia now looks very unlikely indeed. </p><p>As I noted earlier the monthly data is incomplete, we'll have to wait for the quarterly for a better read. that's not until January 31 2024 for the Q4 CPI q/q. The RBA then meet on February 5 and 6. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.