ForexLive Asia-Pacific FX news wrap: Minor moves for major FX again | Forexlive

Relatively
subdued market moves persisted during the Asia time zone again today.

AUD
traders had been awaiting the March quarter inflation reading from
Australia, but it came and went with little response. Inflation rates
remain elevated but are showing signs of having peaked, with falls
for monthly, q/q and y/y CPI rates all reported by the Australian
Bureau of Statistics today (see bullets above for the data).

The
Reserve Bank of Australia has been, and are, forecasting lower
inflation rates ahead. The Bank also argues that changes in monetary
policy act with a lag on economic activity and indicators thereof.
Combining these two convinced the RBA to hold the cash rate steady at
its April meeting after 10 consecutive rises from May 2022 to March
2023 inclusive (the Bank does not have a meeting in January). The
decline in inflation reported today will add to the argument for
another on hold decision at the May 2 meeting, and indeed market
pricing has slumped to under 20% for a hike next week. Having said
this, the CPI does remain elevated and RBA forecasts (in this case
for continued falls back towards the target band) have been
appallingly bad in recent years.

AUD/USD
is little changed on the session, down a few tics in a small range
only. ‘Little change’ can also applied to other majors.

Asian
equity markets: