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The focus in the Asian session will be on the release of Australia’s 2Q CPI today, which is expected to come in at 1.1% year-on-year growth, but all the core metrics are expected to decline further as well and this is far important for the RBA. A further decline in headline CPI accompanied by declines across the board the core CPI metrics would pretty much guarantee an August rate cut by the RBA.
The massive collapse in core inflation measures have been most concerning for the RBA.