AUD - sticky

Yesterday on this page we referred to the sticky inflationary backdrop facing central banks in Norway, Sweden, New Zealand and the UK. Today we add the RBA to the list following this morning’s stronger than expected print for August monthly CPI inflation. Ahead of this release there was no strong expectation for an RBA rate cut at its next meeting on September 30. However, the market was fairly confident of a move in November and these hopes have taken a dive following the inflation release. On the back of the move in short-term interest rates, the AUD is the best performing G10 currency on a 1-day view.