The Aussie rose. Overview for 28.10.2020

AUDUSD is actively rising on Wednesday after the country published some stable statistics.

The Australian Dollar is rising against the USD on Wednesday afternoon. The current quote for the instrument is 0.7153.

The Australian statistics published in the morning showed that the Inflation Rate in the country was 1.6% q/q in the third quarter against the expected reading of 1.5% q/q. This is the highest quarterly reading for over 14 years. On YoY, the CPI was 0.7%, the same as expected. The real number is 2-3% higher than the RBA’s average target. This fact may be reflected in the following comments of the regulator: accelerating inflation may force the RBA to take new steps in its monetary policy.

It’s quite interesting that the key trigger that boosted inflation in the third quarter is neither energies nor the external background. It was the fact that the government ended free childcare, which was introduced in spring to fight inflation at that moment. Now we can see the result. 

Stable inflation parameters are very important for the Reserve Bank of Australia. Using them, the regulator makes various decisions about its monetary policy. As long as basic parameters aren’t “damaged”, the Aussie will be fine.