Softer than exp. Australian CPI data..........>

FOREX: Softer than exp. Australian CPI data resulted in a flurry of activity,

with the AUD softening as bets on RBA rate cuts were rolled forward. After

crashing through the month to date lows, AUD/USD bears now target the 50%

retracement of the move from $0.6741 to $0.7295 at $0.7018, while the print has

AUD/NZD bears targeting NZ$1.0600. The softer than expected print left AUD at

the bottom of the G10 pile, also pressuring NZD & CAD.

- USD/JPY seems reluctant to trade above Y112.00. As a reminder, traders have

alluded to supply interest from Japanese exporters ahead of the Golden Week

holidays, which may be keeping a lid on the pair.

- USD/KRW hit the highest level seen since Sep '17. Broader USD strength, the

U.S. removing the waivers re: sanctions on purchases of Iranian crude, and the

South Korean Finance Ministry formally outlining additional budgetary measures

totalling KRW6.7tn, with the aim of boosting exports, strengthening the social

safety net & creating more jobs, have all weighed on the KRW this week.

- Focus now moves to the latest BoC MonPol decision & German IFO data, due later

today.