The Australian dollar is slightly lower in late trading today as Investors await Wednesday’s CPI number which could be the catalyst for another rate cut from the Reserve bank of Australia.
At 7.19pm (GMT) the Aussie dollar was trading at US75.98c down from US76.03c in yesterday’s close.
After falling over 1.5 percent since last week’s disappointing job figures the local currency has found some support at the US76c level but that may all change if inflation numbers this week come in below expectations.
This scenario would likely see heightened expectations of an interest rate cut from the RBA as soon as next month in order to boost inflation which currently sits well below the RBA’s target rate of between 2-3 percent.
“We have the release of the Q3 CPI data this Wednesday, which is an important data for the local market and the Aussie dollar,” said Greg McKenna, chief market strategist at FX and CFD provider AxiTrader.
“Depending on the CPI numbers, we will see what the Reserve Bank of Australia (RBA) will do or won’t do on interest rates. And that will have an impact on the Aussie dollar.” He added.
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