The Australian Consumer Price Index (CPI) demonstrated a notable increase of 0.9% quarter-on-quarter (QoQ) for the first quarter of 2025, according to the latest figures released by the Australian Bureau of Statistics (ABS) this Wednesday. This represents a significant acceleration compared to the 0.2% growth recorded in the fourth quarter of the previous year. The market had anticipated a slightly lower growth rate, with consensus forecasts pointing towards an increase of 0.8% for the reported period. This stronger-than-expected inflation data has implications for the Reserve Bank of Australia’s (RBA) monetary policy decisions moving forward.
On an annual basis, Australia’s CPI inflation remained steady at 2.4% in Q1 2025, matching the figure from the previous quarter. This result exceeded market expectations, which had projected a rate of 2.2%. The sustained inflation rate, above the RBA’s target band of 2-3%, will likely be a key consideration for policymakers as they assess the need for potential adjustments to interest rates in the coming months. Economists will be closely monitoring upcoming economic data releases to gauge the underlying inflationary pressures within the Australian economy.
AUD/USD reaction to Australia’s Consumer Price Index data
The Australian Dollar (AUD) experienced a modest uptick in value following the release of the inflation data from Australia. The AUD/USD currency pair is currently trading up by 0.30% on the day, reaching a level of 0.6402 as of the time of this report. Market participants are interpreting the higher-than-expected inflation figures as a potential signal that the RBA may adopt a more hawkish stance on monetary policy, which could provide further support for the Australian Dollar in the near term. However, broader market sentiment and global economic conditions will also play a significant role in the future performance of the AUD/USD pair.
AUD/USD 15-min chart
Australian Dollar PRICE Last 7 days
The table below illustrates the percentage change in the value of the Australian Dollar (AUD) against a selection of major currencies over the past seven days. Based on the data presented, the Australian Dollar exhibited the strongest performance relative to the Swiss Franc during this period.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.31% | -0.59% | 0.48% | 0.07% | -0.65% | 0.46% | 0.45% | |
| EUR | -0.31% | -0.91% | 0.16% | -0.24% | -0.93% | 0.13% | 0.12% | |
| GBP | 0.59% | 0.91% | 1.09% | 0.66% | -0.01% | 1.05% | 1.06% | |
| JPY | -0.48% | -0.16% | -1.09% | -0.41% | -1.05% | -0.07% | 0.02% | |
| CAD | -0.07% | 0.24% | -0.66% | 0.41% | -0.63% | 0.40% | 0.39% | |
| AUD | 0.65% | 0.93% | 0.01% | 1.05% | 0.63% | 1.07% | 1.08% | |
| NZD | -0.46% | -0.13% | -1.05% | 0.07% | -0.40% | -1.07% | 0.00% | |
| CHF | -0.45% | -0.12% | -1.06% | -0.02% | -0.39% | -1.08% | -0.01% |
The heat map presented above provides a visual representation of the percentage changes between major currencies. The base currency is selected from the left-hand column, while the corresponding quote currency is identified along the top row. For instance, selecting the Australian Dollar as the base currency and tracing horizontally to the US Dollar will reveal the percentage change representing AUD (base)/USD (quote).
