The AUD/USD currency pair stayed roughly at $0.622 and didn’t move much after the recent inflation updates. In November, Australia’s monthly inflation measurement increased by 2.3%, a slight increase from the 2.1% rise seen over the last two months and just a bit more than the expected 2.2%.
Australia’s 3.2% Core Inflation Could Lead to Rate Cut
Core inflation, which excludes the most extreme price changes, dropped to 3.2% from 3.5% the month before. This decrease has led some to anticipate the possibility of an interest rate reduction sooner rather than later.
While opinions vary on whether the Reserve Bank of Australia will lower rates in February, many already expect a cut in April.
Investors Eye Inflation Data Amid AUD Struggles
Investors are now looking forward to the quarterly inflation report, hoping it will confirm that inflation pressures are decreasing. Meanwhile, the Australian currency is stressed due to a strengthening U.S. dollar, bolstered by positive data on U.S. services.