A$ Down On Weak China CPI Data

AUDUSD spiked on information showing that the RBA had considered a scenario where rates reached 4.8% (see Documents Show RBA Considered Impact Of 4.8% Rates). Most of the rally had been unwound before China’s CPI for April printed below expectations and close to zero. Aussie has continued to decline since and is now around 0.6772. The USD index is flat.

• Aussie is down 0.3% against the yen at 90.87 and -0.2% versus kiwi at 1.0632. AUDGBP and AUDEUR are also down 0.1% to 0.5363 and 0.6169 respectively.
• Equity markets are mixed during APAC trading with the ASX down 0.3% but the CSI 300 up 0.3%. S&P e-minis are 0.2% higher. Oil prices are up about 0.3% after declining over 1% on Wednesday with Brent at $76.69/bbl. Copper is down 0.2% and iron ore is trading around $104/t.
• The Fed’s Kaskari and Waller speak later and there are also US jobless claims and April PPI data. The BoE meets later and another 25bp rate hike is expected.