ForexLive Asia FX news wrap: Australian core inflation surges, RBA to hike next week

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ForexLive Asia FX news wrap: Australian core inflation surges, RBA to hike next week

China's Cabinet split over opening stimulus 'flood gates' to counter property slump
    RBNZ Deputy Governor Christian Hawkesby to speak later today
    ICYMI - U.S. Fears Iran Will Develop Nuclear Weapon Within Weeks
    Chinese drone maker DJI suspends  AND e business
    Australia inflation data - Q1 2022 CPI. Trimmed mean +1.4% q/q (expected 1.2%)
    China Industrial Profits YTD +5.0% y/y (prior 5.0%)
    PBOC sets USD/ CNY mid-point today at 6.5598 (vs. estimate at 6.5614)
    More on China to boost infrastructure spending
    Beijing's Tongzhou district has stopped schools due to COVID-19 outbreak
    US Vice President Harris COVID-19 was prescribed and has taken Paxlovid
    ANZ Roy Morgan Australian Consumer Confidence weekly survey 96.5 (prior 96.8)
    Australian CPI due today - the number to watch to (potentially) trigger a May rate hike
    Chinese President Xi told officials to ensure GDP growth outpaces the U.S.'s this year,
    Goldman Sachs on the euro ... see room for some tactical relief
    ICYMI - Two data points of focus in Asia today - Australian inflation and China profits
    Deutsche Bank forecasting a significant recession in the US, Fed hikes as high as 6%
    Forexlive Americas FX news wrap: Bloodbath in stocks and JPY soars
    Private oil survey data shows larger than expected build in headline crude oil inventory
    Trade ideas thread - Wednesday 27 April 2022
    Robinhood plans to cut around 9% of full-time employees
    US stocks get slaughtered. NASDAQ down over 500 points on the day


The first part of the headline is related to today's Australian Q1 CPI data which say the 'trimmed mean' measure of core inflation (the RBA's go-to measure of underlying inflation) jump above the top of the Reserve Bank of Australia's target band of 2 - 3% to 3.7% y/y. The headline rate hit a whopping 5.1%. Both of these exceeded the central median estimates.

    The second part of the headline is the clear and present implication for the upcoming RBA policy meeting on May 3. The RBA is well behind the curve on its inflation mandate and the consensus is rapidly shifting to looking for a hike next week, from June prior to the inflation data today.

    AUD/USD had inched higher prior to the data but jumped higher still on the release, from around 0.7150 to around 0.7170. Its since slipped back to under 0.7150 and as I update is circa 0.7160. 
    NZD/USD dribbled a little lower in the back of some selling against the AUD.

    News and data flow was light otherwise. 
    We had no comments from Japanese authorities today wailing about yen weakness. USD/JPY lows circa 127.00 early on have since given way to a USD/JPY rally to 127.60 and just above.
USD/CAD softened just a little while EUR, GBP, CHF are not moving much at all.
    Gold lost a few $.

Source: ForexLive Asia FX news wrap: Australian core inflation surges, RBA to hike next week

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