AUSTRALIA CPI PREVIEW: Estimate Miss May Add to RBA’s Caution
Source: BFW (Bloomberg First Word)
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(Bloomberg) -- Australian 1Q CPI may need to match lowest estimate of 1.5% or below, for the RBA to add to its dovish stance at the May 3 policy meeting, Bloomberg strategist Michael Wilson writes.
Alert: HALISTER1- Data will show CPI at 1.7% y/y in 1Q, unchanged from previous quarter, according to median est. in Bloomberg survey; range 1.5% to 2.1%; data due tomorrow at 11:30am Sydney time
- Aussie 1-year OIS curve at 1.88% vs 2.00% RBA cash rate suggests market still has some way to go before pricing in a rate cut
- Since release of 4Q GDP aussie TWI is up 3.8%, while terms of trade has improved around 7%
- AUD/USD steady at 0.7717
- NOTE: Michael G. Wilson is an FX strategist who writes for First Word. The observations he makes are his own
Source: BFW (Bloomberg First Word)
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UUID: 7947283