AUD/USD flows: CPI Continues to Heat Up

Australian CPI beats estimate again and should further traction in the inflationary pressure for Australia. Headline y/y CPI arrived at 3.8% while trimmed mean CPI edged higher from December to 3.4% y/y. The data is supportive of RBA's February hike and seems to reinforce their stance towards two more hike in 2026.

The strong read is encourage Aussie bids and see AUDF/USD to trade 0.33% higher at 0.7082.