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A$ Testing Key Resistance Post Monthly CPI Beat

AUSTRALIA DATA

The July CPI was a touch above market expectations, printing at 3.5%y/y (3.4% was forecast). 3.8% was the prior outcome. Trimmed mean CPI was 3.8%y/y, against a prior outcome of 4.1%. More details to follow. Other data showed weaker than forecast construction work done (+0.1%q/q against a +0.7% forecast).

  • AUD/USD is testing key resistance above 0.6800 post the print. (highs of 0.6805 recorded). We haven't been above these levels since early Jan this year.
  • In the bond futures space, ym is -6, xm -2.5. OIS is 3-8 bps firmer for 2025 meetings.

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