AUD/USD flows: Headline CPI moderates further

Australian Q4 headline CPI has come in lower at 4.1% y/y vs 4.3% expected and shows further moderation from 5.4% in Q3. In q/q basis, headline CPI is also lower at 0.6% from 1.2% in Q3. RBA trimmed mean CPI is 4.2% y/y and 0.8% q/q, both shows moderation and misses estimate. It aligns with our forecast and should allow the RBA to remain on hold. 

AUD/USD sunk on its mark to 0.6565, 0.56% lower for the session along with sour regional sentiment.