AUD Pressured As Inflation Eases

AUD is the weakest performer in the G-10 space at the margins today. Trimmed Mean CPI printed 6.6% Y/Y below the expected 6.7% easing from 6.9% in Q4 2022. March CPI rose 6.3% Y/Y below the expected 6.5% and Q1 Headline CPI was a touch firmer than expected at 7.0% easing from 7.8% in Q4 2022.

• AUD/USD prints at $0.6600/05, down ~0.3% today and the pair currently prints at session lows. Support is seen at support at $0.6590 low from 15 March.
• Kiwi is a touch softer, NZD/USD was up ~0.2% however spillover pressure from the Australian CPI print has seen the NZD pare its gains to sit a touch below yesterday's closing levels.
• Yen is a touch firmer, USD/JPY is ~0.2% softer last printing at ¥133.50/60. Yesterday's lows remain intact for now, we currently sit a touch above the 20-Day EMA (¥133.48) and the next downside support is ¥132.02 the low from Apr 13.
• Elsewhere in G-10 ranges have been narrow with little follow through.
• Cross asset wise BBDXY is little changed today and e-minis are ~0.4% firmer. 2 Year US Treasury Yields are ~2bps higher.
• In Europe today Riksbank’s Monetary Policy Decision headlines. Further out we have US Durable Goods Orders and the minutes from the Bank of Canada's latest meeting.