All Eyes on Australia’s Q3 CPI as Softer US Data Fuels Global Rate Cut Opinion

• US inflation data released Friday came in softer than expected, strengthening expectations that the Fed is more than likely to cut rates over its next two meetings.
• Core CPI rose 0.2% over the month and 3.0% annually, while headline CPI lifted by 0.3%, both slightly under forecasts and suggesting inflation pressures are gradually easing in the economy.
• US Treasury yields were steady overall, with the 10 year ticking up just 1 basis point to 4.00%. Despite the mild move yields still ended lower for the week, marking a fourth straight weekly decline as investors position for potential rate adjustments ahead.
• It’s shaping up to be a big week on the data front, with Australia’s Q3 CPI due Wednesday likely to set the tone for the RBA’s upcoming meeting.
• Globally, attention turns to a busy central bank lineup, with decisions from the Fed, BoC, ECB and BoJ all due in the coming days.