Australia: 2Q CPI & Governor Lowe pushes AUDUSD away from 0.80s - ING

A sub-consensus headline 2Q CPI print (0.2% QoQ vs. 0.4% expected) supports the RBA's view that domestic inflationary pressures are lacklustre, but officials may take some comfort in the slightly firmer core readings, according to analysts at ING.

Key Quotes

“This sentiment was echoed in Governor Lowe's speech shortly after the data release; the RBA chief made clear that there is no need for domestic policy rates to move up in line with other central banks that are tightening. There was some tentative attempt to talk down the currency, with the Governor stating that it "would be better if the AUD was a bit lower". A "bit lower" is in line with our view that AUD/USD should be trading closer to 0.75, with the current overshoot due an excessively weak $.”