Aus Inflation Slows a Tad
AUD
The Aussie opens mixed against all majors this morning with a muted reaction after our inflation has eased once again, according to new data released just days out from the RBA's next interest rates decision. Asian equities were mixed again on Wednesday: The Hang Seng rebounding +0.6%, the Nikkei up +0.7% and the Shenzhen -0.3% softer. The ASX gained +0.7%. Commodities were mostly flat with the biggest mover being Crude Oil and Natural Gas. (1.1% and -1.8%). The monthly Consumer Price Index (CPI) figures from the Australian Bureau of Statistics showed headline inflation slowed to 2.4 per cent over the 12 months to February, still well within the Reserve Bank's target band and down from 2.5 per cent the month before. The slightly lower than expected reading hasn't changed market expectations of an interest rate hold from the RBA next week. The RBA will likely want to see the more closely watched quarterly CPI print in late April before making the next interest rate move. There is no more data out of Australia this week.
USD
AUDUSD opens this morning lower at 0.6286 after hitting highs of 0.6329 overnight. It was a quiet night for the USD with the headline being President Trump stating he will be placing a 25% tariff on auto not manufactured in the United States. A soft night on Wall St. saw the Nasdaq trading -2.1%, the S&P 500 -1.2%, and the Dow Jones -.4%. President Trump addressed the media this morning stating 25% tariffs on all auto manufacturing and also stating that “People will be pleasantly surprised on April 2 in regard to reciprocal tariffs. Tonight, we will see their main event of the week with their Final GDP q/q and Unemployment Claims.
EUR
AUDEUR opens higher this morning at 0.5856 after a quiet night. Eurozone morning trade brought with it little major news as attention turned towards the UK’s Budget. Equities fished both in the red with DAX -1.2% and CAC -1.0%. It has been a quite week for Europe. Tonight, M3 Money Supply y/y and Private Loans y/y.
GBP
AUDGBP opens higher his morning at 0.4882, hitting 1-week highs of 0.4904 overnight with the Pound weakening after UK inflation printed weaker than expectations. FTSE reacted positively, in the green 0.3%. Last night saw their CPI y/y and their Annual Budget. The CPI y/y came in softer at 2.8%, showing signs of their tax hike impact. Regarding the budget, UK Finance Minister Reeves cut 3.5 billion Pounds from UK public spending plans. Nothing out of the UK tonight. To end the week will see their Retail sales m/m
NZD
AUDNZD opens flat at 1.0993. No Kiwi data this week.