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Forex Flash: CPI alone unlikely to prompt RBA cut in May - NAB

FXstreet.com (Barcelona) - With AUD/USD last at 1.0267 bouncing from fresh 1-month lows yesterday at 1.0218 to almost break even for the week, central risk event for the Asia-Pacific today will be Australia CPI data release. According to the NAB: “Core inflation in the March quarter is forecast to rise 0.5% for 2.5% yoy,” while “Headline CPI inflation is expected to be a little stronger, at 0.7% (2.8% through the year),” the bank says.

“But while inflation remains subdued, the CPI alone is unlikely to prompt a further RBA rate cut in May, as we need much weaker activity data for the RBA to cut again,” the analysts conclude.

Commodities Brief: Gold rally runs out of steam as S&P finishes sharply higher

After trading higher the five previous sessions, gold failed to achieve further gains closing down 0.91% at 1412.70. The equity market again seemed to be the beneficiary of lackluster economic data after both China and European PMI data came in weaker than expected. The S&P 500 closed up +1.02% to finish at 1578. It appears the “bad news is good news” theme is back in play for stocks with market participants again pinning hopes on central banks to provide more liquidity.
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Forex Flash: RBNZ disappoint rate cut expectations - Westpac

The RBNZ’s OCR review was mostly a repeat of the statement from March, notes Sean Callow, FX strategist at Westpac, adding that "it has probably disappointed those expecting further emphasis on the high NZD, and therefore an increased chance of a rate cut."
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