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AUD/USD, ASX 200: Stalling disinflation weakens case for RBA rate cuts
Australia’s inflation indicator shows price pressures remain far above the RBA’s target Annual rates for headline and underlying inflation are trending flat to higher High inflation increases the risk of the RBA being forced to hike rates again AUD/USD strengthens on rate differentials but ASX 200 futures sink Disinflationary forces in Australia have stalled with annual rates for headline and underlying inflation trending flat to higher, and well above the 2.5% midpoint of the RBA’s target. Not only does that weaken the case for rate cuts but means the next move from the RBA may be a hike. That may support ... (full story)