The Aussie dollar is a little firmer after the release of the second quarter inflation data this morning.
Even though rate cut expectations are now even money for an RBA rate cut next Tuesday the Aussie dollar buyers are subdued because the data paints a mixed picture and keeps the RBA in play.
While the 0.6% quarterly headline print was stronger than market forecasts of 0.4%, the year-on-year total of just 1% was marginally lower than the average forecast of 1.1%.
Australian core inflation at 0.45% on quarter, 1.5% on year. That’s still well below RBA target range but, importantly, in line with its forecasts.
Overall this mixed picture means the RBA can still make the case, if it chooses to, at next Tuesday’s board meeting that inflation is low enough to warrant another rate cut to shore up economic growth and inflation expectations.
A short time ago the Aussie was trading at 0.7319 up 0.25% on the day.
Here’s the 15 minute chart:
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