Strong Inflation Report Allows AUD To Outperform Despite Cautious Tone

The Aussie dollar caught a bid following the release of above-forecast inflation data down under. Australia's headline consumer price growth topped expectations in Q4, while the RBA's preferred metric of underlying inflation rose above the mid-point of the target range for the first time since 2014. The data inspired participants to add hawkish RBA bets, with money markets pricing a 15bp rate cash hike in May & speculation doing the rounds that policymakers could scrap their QE programme as soon as next week.

• The AUD remains the best performer in G10 FX space, despite already erasing most of its post-CPI gains amid broader risk aversion. Asia-Pac equity benchmarks trade in the red, with focus on the imminent policy decision from the Fed & escalating geopolitical tension over Ukraine.
• The yen has found some poise over the last two hours or so, with USD/JPY pulling back from its session high of Y114.10. Meanwhile, the Swiss franc has struggled for any topside impetus.
• The MAS may have added fuel to the broader concern over global policy tightening, as they delivered a surprise decision to "slightly raise" the appreciation rate of their S$NEER policy band.
• German Ifo Survey & U.S. Conf. Board Consumer Confidence take focus on the data front today. Central bank speaker slate features ECB's Holzmann & Riksbank's Skingsley.