Aussie dollar continues to trade above 68 US cents

Daily Currency Update

The Australian dollar is slightly weaker this morning when valued against the Greenback, currently trading at US$0.6815 at time of writing. The AUDUSD pair's decline came as the US dollar regained its safe-haven appeal amidst persistent global economic concerns. Despite the weaker Australian Consumer Price Index (CPI) data, near-term rate cuts from the Reserve Bank of Australia (RBA), remain unlikely. Last month, Australian Inflation dived to its lowest rate in 3 years as the government's cost-of-living relief and cheaper petrol helped household budgets, but the RBA will likely wait for a more sustained drop before it starts cutting interest rates. Headline consumer price inflation in August was 2.7%, the lowest reading since August 2021, according to the Australian Bureau of Statistics report, released on Wednesday. The underlying inflation measure, which strips out more volatile price movers, also fell. Known as the trimmed mean, this gauge came in at 3.4%, down from July’s 3.8%. RBA Governor Michele Bullock indicates that recent data has not significantly affected the policy outlook, reinforcing the hawkish stance and limiting the AUDUSD downside.