AUD/USD Gains as Australia's Core CPI Cools to 3.3%, Below Forecast

AUD/USD has edged higher following the release of Australia's February CPI data, which showed softer-than-expected inflation on both headline and underlying measures. The trimmed mean (core) CPI came in at 3.3% year-over-year, below the anticipated 3.4%, signaling continued progress in the Reserve Bank of Australia's fight against inflation. Australian equities extended gains on the data, reflecting market optimism that easing price pressures could support a more dovish RBA stance in coming meetings. However, traders should note that March fuel price surges, likely driven by rising global oil prices, could reverse some of this disinflationary momentum in the next reading. The softer CPI print initially weighed on the Australian dollar as markets priced in increased probability of future rate cuts, but broader risk appetite provided offsetting support. Near-term resistance for AUD/USD sits around the 0.6350 level, with support near 0.6280. Traders should monitor upcoming RBA communications for guidance on how the central bank interprets this data alongside the anticipated energy cost pressures heading into Q2.