AUD/USD flows: Jumped on hot CPI

The May Australian monthly CPI has come in hotter than expected at 4%, up 0.4% from 3.6% in April. This confirms RBA's remark in the last meeting, suggesting the overall pace of CPI moderation is not only slower than estimated but also rebounding higher in the past month and expected to remain high on energy prices and the end of rebate. However, there is little market participant anticipating any easing in 2024 and the Australian economy does not allow much room for further tightening. Thus, any CPI led spike would likely be short lived.

AUD/USD is trading 0.44% higher at 0.6676 despite risk sentiment mixed.