Australia's inflation rate unexpectedly recorded an increase in the third quarter supported by a resurgence in fuel prices, but still far from the central bank's target.
Most recently, data published by the Australian Bureau of Statistics (ABS) showed the annual consumer price index rose 0.7% in the third quarter after recording a fall of 0.3% in the previous second quarter.
While the quarterly consumer price index jumped significantly by 1.6%, recovering from the contraction recorded in the previous quarter -1.9%.
However, the surge is still well below the 2-3% Reserve Bank of Australia (RBA) target level and with the economy emerging from the recession, it will remain below the expected average for the foreseeable future.
Moreover, this encouraging data may also not be enough to prevent the RBA from lowering interest rates to a low of 0.1% from 0.25% in November.
This is due to the resurgence of coronavirus cases in Europe and the United States which could threaten global economic recovery efforts.
Following these positive data, the Aussie dollar once again recorded an increase at the beginning of the European market session.
However, with the gloom of sentiment plaguing the market, currency trading will continue to be under pressure.
