The main data release this week was the Consumer Price Index (CPI) which rose 0.7% in Q3 – the first rise since Q4 2015. The quarterly price rise still left annual headline inflation at 1.3 per cent, according to the Bureau of Statistics. The average of the Reserve Bank's two preferred measures, which exclude the most volatile price moves, was 1.5 per cent, still well below its 2-3 per cent inflation target.

However, the result was broadly in line with both RBA and market economist expectations, meaning that a further interest rate cut this year looks unlikely. This dampened market speculation for additional monetary support and gave the AUD a little boost. Signs of little price growth may encourage the Reserve Bank of Australia (RBA) to preserve the current policy throughout the remainder of the year, and RBA Governor Philip Lowe may largely endorse a wait-and-see approach going into 2017 as the economy continues to ‘grow at a moderate rate.