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.