AUDUSD Rebounds Following Wages Data, Employment Data Next Focus

AUDUSD fell slightly following the marginally softer quarterly Q1 WPI but has rebounded to a level higher than pre the data helped by stronger commodities. It is currently 0.2% higher than the close at around 0.6669. The USD index is slightly lower.

• Aussie is up 0.3% against the yen at around 91.04, close to the intraday high. AUDNZD is down 0.1% at 1.0670, but off the low of 1.0656. AUDEUR is up 0.1% to 0.6136 and AUDGBP is 0.2% higher at 0.5340.
• The Q1 WPI was close to analysts’ expectations rising 0.8% q/q and 3.7% y/y (Q4 0.8% and 3.4%). It is still consistent with the inflation target but there are a number of worrying details. See Q1 Wages In Line But Some Concerning Trends.
• Equity markets are mixed during the APAC session with the ASX down 0.5% and the Hang Seng -0.3% but the Nikkei up 0.7%. S&P e-minis are up 0.2% on news there may be a debt ceiling agreement by week end. Oil prices are steady after falling on Tuesday with Brent around $74.92/bbl. Copper prices are 0.3% higher and iron ore is also stronger rising to $105.75/t.
• Later in the US there is a Senate Banking hearing on strengthening Fed accountability and there is April housing data released. There is also the euro area April HICP. Australia’s employment report prints on Wednesday, which is an important input into RBA decisions.