Aussie Hits 5-Week High on Hot CPI Print

2026-10-28 01:18 By Joshua Ferrer 1 min. read

The Australian dollar strengthened to above $0.70, hitting a five-week high after hotter-than-expected inflation data boosted expectations for a fifth interest rate hike this year.

The monthly CPI rose 0.8% in September, the biggest increase in six months and above the expected 0.7%, while the annual pace jumped to 4.3% from 4.0% in August, also surpassing forecasts of 4.2% and reaching its highest since March.

The monthly core inflation rose 0.3%, matching expectations, while the annual rate edged up to 3.6% from 3.5%, also in line with forecasts.

The pickup pushed inflation further above the RBA’s 2–3% target range, boosting bets on a hike at the November 3 meeting.

The data followed remarks from RBA Governor Michele Bullock earlier on Wednesday, when she warned that upside risks to inflation were materializing and price pressures would likely exceed the central bank’s August forecast.

Traders raised the probability of a November hike to 88%, up from 60% before the inflation report.



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Aussie Hits 5-Week High on Hot CPI Print
The Australian dollar strengthened to above $0.70, hitting a five-week high after hotter-than-expected inflation data boosted expectations for a fifth interest rate hike this year. The monthly CPI rose 0.8% in September, the biggest increase in six months and above the expected 0.7%, while the annual pace jumped to 4.3% from 4.0% in August, also surpassing forecasts of 4.2% and reaching its highest since March. The monthly core inflation rose 0.3%, matching expectations, while the annual rate edged up to 3.6% from 3.5%, also in line with forecasts. The pickup pushed inflation further above the RBA’s 2–3% target range, boosting bets on a hike at the November 3 meeting. The data followed remarks from RBA Governor Michele Bullock earlier on Wednesday, when she warned that upside risks to inflation were materializing and price pressures would likely exceed the central bank’s August forecast. Traders raised the probability of a November hike to 88%, up from 60% before the inflation report.
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