Low inflation fuels rate cut speculation in Australia

The RBA will not be amused. Inflation figures for the third quarter clearly disappointed. 

What is particularly worrying is the fact that the seasonally adjusted "trimmed mean", which the RBA uses as a measure of underlying inflation, was up only by 0.3% qoq. 

"This is the same rate of change as in the third quarter of 2014. Following three strong quarters the weaker inflation rate will most likely spur speculation about further rate cuts. In particularly if neighbouring New Zealand cuts its key rate tonight. We see further downward potential for AUD-USD", says Commerzbank.