Home News ForexLive Asia FX news wrap: AUD drops on low CPI result – ForexLive

ForexLive Asia FX news wrap: AUD drops on low CPI result – ForexLive

2 min read

Forex news for Asia trading Wednesday 24 April 2019 

The Australian dollar dropped today when the inflation data came in at a headline 0.0% q/q (i.e. unchanged on the quarter), well below the consensus midpoint (median) expectation of 0.2%. It wasn’t just the headline rate, though, the two ‘core’ measures, trimmed mean and weighted median, also came in below expectations. AUD/USD was marked down immediately from circa 0.7090 to under 0.7040. It has hardly bounced since the release. 

Market pricing for a May RBA rate has risen to above 50% (and 60%), while further out months show an even more solid expectation. More in the bullets above what the RBA will be considering on May 7 at its next meeting.

NZD/USD fell alongside the AUD, but not to the same extent of course, from around 0.6650 its currently under 0.6520.

Apart from the Australian data there was little data or news that impacted and ranges elsewhere have been limited. USD/CAD has crept up a little more after the CAD was weak on Tuesday during US time (don’t forget, there is a Bank of Canada meeting today, previews below).

EUR/USD is a few points weaker on the session, GBP/USD is barely changed, while USD/CHF is a few tics higher. USD/JPY had little more than a 10 point range, not much outside of 111.85/95. There is a Bank of Japan monetary policy underway, statement due tomorrow with a basically unanimous expectation of no change in policy. 

Still to come:

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