A$ Stronger Following US CPI Data, Watch For Local Jobs Figures

The AUDUSD spiked to 0.6723 following the larger-than-expected easing of US headline inflation. Core rose 0.1pp as projected. It is off the highs but still up 0.6% at around 0.6695. The USD index is 0.7% lower.

• European currencies outperformed the Aussie on Wednesday, except GBP, but it did better than the yen, kiwi and CAD. AUDNZD is 0.2% higher at 1.0771, approaching the pre-RBA pause high of 1.0792. AUDJPY is up 0.25% to 89.18. AUDEUR is down 0.1% to 0.6092 but AUDGBP is up 0.15% to 0.5363.
• Equity markets were mixed with the S&P down 0.4% but the FTSE up 0.5% and the Eurostoxx flat. The VIX finished at 19.1%. WTI oil prices rose on the lower US CPI and are up 1.9% to $83.10/bbl. Copper rose 1.2% and iron ore is at $117.35/t.
• Today the focus will be Australia’s March employment data. Economists expect it to rise a further 20k after +64.6k the previous month and for the unemployment rate to rise to 3.6% from 3.5%. Before that MI consumer inflation expectations print for April print.