The latest data published by the Australian Bureau of Statistics (ABS) on Wednesday showed that the nation’s Consumer Price Index (CPI) decelerated from the 4.9% YoY rate to 4.3% in November. The reading was slightly lower than the consensus estimates for a reading of 4.4%. 

Market reaction

The AUD/USD pair reacts little to the monthly data, which does not show all components of the CPI included in the quarterly report. Inflation figures for the October - December 2023 quarter will be published on January 31 2024 and will play a key role in influencing the Reserve Bank of Australia's (RBA) policy decision.