Australia’s monthly Consumer Price Index (CPI) lands Wednesday at 01:30 UTC, opening the Asian session with a release AUD traders track closely. The consensus forecast of 0.5% would be half the previous month’s 1.0% reading, putting the pace of inflation cooling at the center of the session.
What Australia’s CPI m/m measures
The CPI m/m tracks the change in the price of a fixed basket of goods and services bought by households from one month to the next. It is a timely gauge of inflation, and because price pressures feed into Reserve Bank of Australia policy expectations, currency markets treat each print as a read on the domestic rate path.
This release carries a forecast of 0.5%, down from the previous 1.0%. A monthly figure sitting at half the prior pace is the detail drawing attention here: it frames how quickly, or slowly, monthly price growth is easing.
How the Australian dollar pairs are trading
Ahead of the release, the Aussie is mixed across the board. EURAUD is the biggest mover, down 0.28% at 1.61859. AUDCHF trades 0.23% higher at 0.58263, and AUDCAD is up 0.21% at 0.99372.
Elsewhere, AUDNZD is 0.20% lower at 1.23769, while AUDUSD holds a 0.13% gain at 0.70168. AUDJPY is close to flat, up 0.07% at 110.39.
The CPI m/m is watched as a signal of whether Australian inflation is easing toward the forecast pace or holding nearer the prior reading.
Descriptive market news from the ForexBullion Research Team. Not investment advice.
