The Consumer Price Index for the second quarter will be published by the Australian Bureau of Statistics. The publication will run from this Tuesday at 21:00 GMT-3 (Argentine time).
The projections indicate that the indicator, annualized, presents an increase above the estimated target of the RBA. The measures taken by the Reserve Bank of Australia were aimed at recovering the rhythm of economic growth, achieving full employment and sustained inflation between 2% and 3%.
However, it would not represent a concern, as the increase would be due to seasonal and temporary causes.
For the administration of the RBA, Philip Lowe, they expect inflation to return to below 2% by the end of the year. Before considering changes in interest rates, sustainable, non-seasonal inflation should take place.
The projections of the specialists are located at a CPI of 0.7%, which would mean an increase to 3.8% annualized.
On August 3, a meeting of the RBA will take place, where they will evaluate the direction of the economy, considering the new closures and restrictions that the government had to implement to alleviate the effects of the increases in infections. This will have effects on the economy and the results will probably be seen in the third quarter. Due to this context, changes in the current monetary policy could be postponed and therefore the reduction of stimuli could be postponed.
The AUDUSD closed buy at 0.7379 and after opening at 0.7356. Volatility is expected for the crossover due to the impact of the data.