Skip to content

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

AUD: Australia inflation finally cools, but where now?

There seems to be less pressure on the Reserve Bank of Australia (RBA) after the release of the central bank's quarterly inflation data.

Video poster image

Trimmed mean CPI, the RBA's favoured reading, decelerated to 0.9% in the second quarter year-on-year, from 1.2% the previous quarter. Economists were anticipating a rise of 1.1%. Rate futures are now pricing in a 25% chance of a quarter-point hike at the bank's next meeting, compared with 50% before the data release. The Aussie is down across a whole range of other currencies.

(Video Transcript)

The Reserve Bank of Australia

There seems to be less pressure on the Reserve Bank of Australia (RBA) to raise interest rates after the most recent inflation report came through today. The trimmed mean CPI. Now that the RBA's favoured rating has decelerated to 0.9% in Q2 year on year from a 1.2% reading in the previous quarter, Economists were anticipating a 1.1% rise, and rate futures are now pricing in a 25% chance of a quarter-point rate hike at the bank's next meeting.

Australian dollar

Now that's compared with the 50% expectation before the release of this data. I want to show you just one chart here, and that is the move on the AUD. We have been relatively low today. It bounced off the 200-day moving average at one point. But the broad sweep is that the Australian dollar is weaker in the wake of this slower-than-expected rise in inflation.

For more videos from us here at lGTV, join us on Twitter at IG.com, Instagram, and subscribe to our YouTube channel.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market.

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Equities
  • Indices
  • Forex
  • Commodities


Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.