Sunday , 24 November 2024
Home Forex Australian Treasury official speaking – headline inflation slowing … but
Forex

Australian Treasury official speaking – headline inflation slowing … but

Secretary to the Australian Treasury, Dr Steven Kennedy, is giving testimony in the Australian parliament, at the Senate Budget Estimates, Economics Legislation Committee.

You can view the live event here.

In brief:

  • Interest rates will come down, but not to pre-pandemic levels
  • household consumption is subdued
  • households are rebuilding savings
  • underlying inflation is useful for the direction of inflation, headline inflation has shown a “material” fall in cost of living pressures.
  • a fall in cost of living pressure has been shown in headline inflation
  • underlying inflation showing the direction of inflation
  • says trade off between lower inflation and jobs

AUD not a lot changed on his testimony, he does not seem out of line with current RBA thinking.

Note his comments on headline vs. underlying inflation. Headline inflation in Australia, according to the most recent release, dipped under the top of the RBA target band (the band is 2 – 3%) while underlying (core) inflation (in this case the trimmed mean) stayed well above 3%.

***

AUD/USD not doing much. Its really waiting for cues from the US election. We just had some exit polls. Pretty useless they were, IMHO:

This article was written by Eamonn Sheridan at www.forexlive.com.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

ECB Villeroy says falling inflation allows the Bank to lower interest rates

Villeroy heads up the Bank of France. He spoke with Ouest-France newspaper,...

CCI Histogram Volume MT5 Indicator

The world of financial markets can feel like a whirlwind of charts,...

Global Market Weekly Recap: November 18 – 22, 2024

Global markets rallied despite heightened Russia-Ukraine tensions, with gold and oil gaining...

FX Weekly Recap: November 18 – 22, 2024

Major currencies saw wild swings as Russia-Ukraine tensions escalated. Safe havens rallied...