AUD: Fall in core CPI is unprecedented - TDS

Research Team at TDS, suggests that ahead of Wed Q3 CPI of Australia, lots of questions about TD’s forecast and RBA implications. 

Key Quotes

“For the RBA to be truly shocked into easing in Nov we need to see a similar half-point downside miss (late April Q1 core was 1.5%/yr instead of expected 2.0%/yr).  To achieve another half-point downside miss, we need to see the average of the core measures printing at -0.1%/qtr.  While TD is on the dovish side of expectations, a fall in core CPI is unprecedented.”