- Latest CPI data puts annual inflation at 2.1%, right at the bottom of the RBA’s target band of 2%-3%
- Based on last RBA stratement, this fall in CPI will guarantee that the RBA cuts interest rates by 25 bps next Tuesday
- Japan’s March CSPI -0.3% YoY
- ECB Nowotny: Bond-buying in ‘sleep mode’ as liquidity demands have been fully met by ECB
- South Korean FinMin official sees 2012 economic growth at around 4%
- Nikkei -0.4%, Kospi -0.6%, Shanghai -1%; HK and Sydney flat
- Gold $1638/oz, Oil $103/bbl
The AUD has been the prime mover, falling by around 0.5% across the board after the latest CPI data telegraphed an interest rate cut for next week. AUD/USD traded in a quiet 10 pip range for most of the morning but quickly fell by 50 pips directly after the data and hasn’t been able to recover. AUD/JPY selling in the afternoon has ensured that fresh session lows were reached. Ranges: 1.0245/1.0324
USD/JPY was very quiet for most of the day, trading in a 10 pip range until AUD/JPY selling emerged, driving the USD/JPY back below 81.00. Ranges: 80.86/81.18
EUR/USD has hardly troubled the scorer inside a tight 15 pip range, 1.3143/58.
Cable 1.6107/29; EUR/CHF 1.2013/20
