 Australian Dollar is having a robust, broad-based rally today, boosted by unexpectedly strong CPI data. This inflation report is particularly notable given the unexpected reacceleration in monthly CPI in March, which contributed to the quarterly figure not slowing as much as anticipated. Meanwhile, both services and domestic inflation remain elevated. The set of data is unlikely to alter RBA's "not ruling anything in or out" stance at the upcoming meeting in May. The timing of the first rate cut is now pushed further to the end of the year, and there is even possibility that the next move is a rate hike. Overall in the currency markets, New Zealand Dollar and Sterling also strengthened as the second and third strongest for the day, benefiting from improved risk sentiment this week. This uplift in market mood has sparked questions about whether the correction in global stocks observed this month has run its course, a key point of focus for the coming days... |
