AUD/USD flows: Higher Monthly CPI

The Australian April monthly CPI has come in higher than expected at 3.6% y/y. While it is not as comprehensive as the quarterly CPI, it is likely the q2 CPI will likely come in higher than expected and further delay the pace of cut. The level of inflation is still moderating towards RBA's target range of 3% and we are not forecasting the RBA to restart tightening for a small bump. More province in China are rolling out support policy for the property sector and continue to encourage the Chinese equity market.

AUD/USD is trading unchanged as the aforementioned supportive factors are cancelled by broad USD strength.