AUDUSD Continues Trending Down Towards 66c

AUDUSD unwound its initial dip following Q1 CPI data, which showed lower than expected underlying inflation. But it had been trending down prior to the release and continued to do so after the initial reaction, as minimal OIS rate hike expectations eased further. It is currently trading around 0.6614, close to the intraday low of 0.6612. The USD index has been trading sideways.

• AUDNZD dipped to 1.0769 following the Australian CPI data but has bounced to 1.0781. AUDJPY is down 0.3% to 88.38, but off the intraday low of 88.31. Aussie is weaker again against the euro, down 0.2% to 0.6026, and AUDGBP -0.2% to 0.5327.
• Australian Q1 CPI inflation was close to expectations with headline slightly above but trimmed mean below. CPI rose 1.4% q/q to be up 7% y/y after 1.9% and 7.8% in Q4. Trimmed mean eased to 6.6% y/y from 6.9% while rising 1.2% q/q down from Q4’s 1.6%. See Inflation Easing But Domestic Components Could Push RBA To Hike for details.
• Equities are generally weaker during APAC trading with the Nikkei down 0.5%, the ASX -0.1% but the Hang Seng up 0.5%. S&P e-minis are 0.5% higher. Oil prices are stronger with WTI up 0.5% to $77.48/bbl. Copper is up 0.9% and iron ore is also higher at just under $102-103/t.
• Later there are preliminary US durable goods orders for March. On Thursday Australian Q1 trade price data is released.