RBA to Inspect Post-Cut Inflation Pulse

AUD

The Aussie Dollar opens mainly lower against the majors, with the recent decline in US stocks fueling risk-off sentiment, weighing on the AUD. Commodities were also mainly down with the big movers being Natural Gas -6.1% and Crude Oil -2.3%.  Asian Equities were all down with SHANGHAI COMP -0.8%, NIKKEI -1.4% and locally the ASX -0.7%. Quiet week for the Aussie with the main event for the week happening today as our monthly CPI is expected to uptick by 0.1% to 2.6% as power bill relief continues to roll off. The monthly CPI is not as closely watched by the RBA Board as the quarterly figure, but with the next quarterly print not due until April 30, four weeks after the next RBA interest rate decision, today's data will provide the next best insight into whether disinflation is continuing and last week's interest rate cut was the right decision. There are minimal data points for the rest of the week. Next week we have the RBA Meeting Minutes and Retail Sales data.
 

USD

The AUDUSD pair opens flat this morning at 0.6345 as renewed fears of additional US tariffs limits the Aussie’s upside. Wall Street was mixed with DOW JONES 0.4%, S&P 500 -0.3% and NASDAQ -1.1%. Quiet day for the US yesterday with low tier data, however, Trump did come out and say that tariffs on Canada and Mexico will be starting next month which is underpinning the USD. Investors now look ahead to Friday where the US has their Core PCE Price Index expected at 0.3%.
 

EUR

The AUDEUR pair opens down at 0.6036 this morning despite uncertainty about the outcome of the victorious CDU party. European equities both closed the day in the red with DAX -0.1% and CAC -0.5%. Last night the Euro had their Negotiated Wage Growth come in at 4.12% down from 5.43%. Germany also had their GDP Growth Rate Y/Y which came in on expectations at 0-.2%. New CDU leader, Frederich Merz, is expected to face heated negotiations to fulfill his economic agenda as the German economy has been contracting for the last 2 years. This evening, German GfK Consumer Confidence comes out and is expected at -21.4.
 

GBP

The AUDGBP pair opens down at 0.5010 after hitting lows last night of 0.4993. This comes despite BoE policymaker Dhingra calling for a quicker monetary expansion cycle due to the weak demand environment. It is worth noting that she was one of two policy makers that called for a larger 50 basis point cut in their last monetary policy meeting. The FTSE closed the day slightly in the green at 0.1%. Dhingra will be speaking again this evening at the National Institute of Economic and Social Research, in London.
 

NZD

The AUDNZD pair opens slightly up at 1.1079. Quiet week for the Kiwi this week. Tomorrow, they have ANZ Business Confidence.