RBA Maintains Hawkish Stance Despite Softening Inflation Numbers

Australia's August Consumer Price Index (CPI) report showed softer inflation numbers, but the Reserve Bank of Australia (RBA) is still expected to maintain its hawkish stance. The headline inflation rate came in at 0.4% month-over-month and 4.0% year-over-year, while the trimmed mean inflation rate was 0.2% month-over-month and 3.6% year-over-year.

These numbers are slightly lower than expected, but they still indicate that inflation remains a concern for the RBA. The bank had already raised interest rates in Q3 and is seen tightening again in the new year. This hawkish stance is likely to have an impact on the Australian Dollar's prospects.

However, not all data points are pointing in the same direction. While building approvals tumbled 6.1% month-over-month, data centre activity continues to boom. This contrast may have implications for the Aussie Dollar's performance.