Australia’s annual inflation rate climbed to 4.3% in September, while FXStreet reported AUD/USD near 0.7040, bringing the Australian price outlook and upcoming U.S. data into the currency story as policymakers assess inflation.
FXStreet reported at 2:53 a.m. ET (06:53 UTC) Thursday that the Australian dollar/U.S. dollar pair was down 0.14%, after pulling back from an outlet-reported monthly high of 0.7068. In a four-hour chart review, FXStreet placed the prior trading range between 0.6994 and 0.7040, with the 20-period exponential moving average at 0.7036 and the relative strength index at 58. The outlet identified 0.6994 as support and 0.7100 as a possible upside level, and said an AI tool assisted the analysis.
The Australian Bureau of Statistics (ABS) put annual Consumer Price Index (CPI) inflation at 4.3% in September, compared with 4.0% in August. CPI rose 0.8% during September and 1.3% over the quarter. The housing component of the CPI rose 5.2% from a year earlier and was the largest contributor to annual inflation; transport rose 8.7% and was the second-largest contributor, ABS data show. The agency linked housing pressure in part to builders passing on new-home costs and connected transport inflation to fuel prices and higher world oil prices.
Inflation is above the Reserve Bank of Australia’s (RBA) 2% to 3% target. On Sept. 29, the RBA set its cash-rate target 25 basis points higher, at 4.60%. Its statement left further tightening conditional on the board’s assessment of what is needed to return inflation sustainably to target.
After a 10-2 vote Wednesday, the Federal Reserve left its federal funds target range at 3.75% to 4.00%. The Bureau of Economic Analysis (BEA) scheduled its advance estimate of third-quarter GDP and September Personal Income and Outlays report for 8:30 a.m. ET Thursday. The monthly report includes the personal consumption expenditures price index.
EconoTimes previously covered the Australian dollar above 70 U.S. cents ahead of the September CPI release. The RBA’s next policy statement is scheduled for 10:30 p.m. ET Monday, Nov. 2 (2:30 p.m. AEDT Nov. 3).
