A$ Weakness Short lived On CPI Miss, Bond Futures Higher

AUD/USD has dipped modestly post the CPI miss. We were above 0.6650 prior to the release but have subsequently dipped to 0.6637, before stabilizing. We were last 0.6650, so unchanged versus pre CPI levels. Earlier highs were at 0.6658. In the bond space, 3yr futures are +7 after the data.

• The CPI print was 4.9% y/y, versus 5.2% expected, and 5.6% prior. One word of caution around this print is that ABS doesn't update certain service prices in the first month of a new qtr. Hence this may be overstating the extent of the fall. More details to follow.
• Other data showed better than expected Q3 construction work done data (+1.3%q/q, versus 0.3% forecast), while Q2 was revised higher to 2.0% (from 0.4% initially).