AUD Goes Bid After Core CPI Beat, Defies Broader Defensive Flows

The AUD caught a bid following the release of Australia's CPI data for the third quarter. Although headline figures fell virtually in line with expectations, the trimmed mean print beat consensus estimate and jumped to +2.1% Y/Y from +1.6%, putting the RBA's preferred underlying measure back above the lower boundary of its 2-3% target range for the first time since 2015.

• AUD/NZD gained for the third day in a row, as the kiwi landed at the bottom of the G10 pile. The Antipodean divergence was reflected AU/NZ 2-Year swap spread, which bounced off cycle lows.
• NZD weakness may have been linked to softer commodity prices, oil-tied CAD and NOK also struggled.
• The yen reversed its initial losses as risk sentiment soured amid signs of bubbling Sino-U.S. tensions.
• The BoC will deliver their monetary policy today. The global data docket features flash U.S. durable goods orders.