A$ Rallies Looking Through Softer Wages, US CPI Coming Up

Aussie looked through the slightly softer Q1 wages data and has continued to trend higher during the APAC session despite softer China equities but HK is closed. AUDUSD is 0.2% higher at 0.6638, close to the intraday high of 0.6634. The USD index is slightly lower.

• AUDJPY is up 0.2% to 103.85. AUDNZD is slightly higher at 1.0972. AUDEUR is up 0.2% to 0.6134 and AUDGBP +0.2% to 0.5272.
• The Q1 wage price index rose a less-than-expected 0.8% q/q to be up 4.1% y/y, the third straight quarter above 4%. The RBA had expected 4.2% y/y and so the result is broadly in line with its forecast. April jobs data out on Thursday.
• Equities are mixed with the ASX up 0.4% but the CSI 300 down 0.4%. The S&P e-mini is 0.1% higher. Oil prices are stronger with WTI +0.7% to $78.58/bbl. Copper is up 2.0% but iron ore is steady around $114-115/t.
• Later the focus will be on US April CPI (see MNI preview) which is expected to show a moderate improvement in the annual rates. There is also April retail sales and real earnings data. The Fed’s Barr, Kashkari and Bowman speak. Euro area Q1 GDP/employment and March IP are released.