AUD: A$ Outperforms Following Slightly Higher Q1 CPI Print, US GDP Out Later
AUDUSD jumped on the moderately higher-than-expected Q1 CPI data that included upward revisions to Q4 and Aussie is now outperforming the rest of the G10, despite mixed equities and lower commodity prices. It reached a low of 0.6379 before the data and then jumped to 0.6407 following the print but has struggled to hold the break above 64c and is currently around 0.6398 to be up 0.2% today. The USD index is little changed.
- AUDNZD has trended higher through most of the session and is now +0.3% to 1.0792, close to today’s peak.
- AUDJPY is up 0.2% to 91.09, close to the intraday high of 91.22. AUDEUR rose to 0.5634 following Australia’s inflation data and is now +0.3% to 0.5624. AUDGBP is also 0.3% higher at 0.4777 off the peak of 0.4781.
- Equities are mixed with the ASX up 0.2% but Hang Seng down 0.4% and S&P e-mini -0.5%. Oil continues to sell off with WTI -0.9% to $59.90. Copper is down 1.2% and iron ore is around $98/t.
- Later US Q1 GDP & employment costs, March core PCE prices, April MNI Chicago PMI & ADP employment print. Also preliminary April euro area CPI, Q1 GDP including Germany, France & Italy, German March retail sales & unemployment are released. BoE’s Lombardelli speaks.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
JGBS AUCTION: PREVIEW - 2-Year JGB Auction Due
The Japanese Ministry of Finance (MoF) will today sell Y2.6tn of 2-Year JGBs. The MoF last sold 2-year debt on 27 February 2025, the auction drew cover of 3.1637x at an average yield of 0.826%, an average price of 99.948, a high yield of 0.833%, a low price of 99.935, with 62.4996% of bids allotted at the high yield.
- Last month’s 2-year auction saw a significant tapering in demand, with the cover ratio falling to 3.1637x from 4.06x and the auction tail lengthening compared to the previous month.
- Aligning with that result, this month’s 5-year auction showed weak demand metrics, with the auction price failing to meet expectations, the cover ratio declining to 3.1658x from 3.8158x and the auction tail lengthened to 0.07 from 0.03.
- Results are due at 0335 GMT / 1235 JST.
CHINA: Liquidity Injection Gives Bonds A Boost as Futures Rise.
- As the PBOC injected liquidity in this morning’s OMO, bond futures jumped.
- China’s 10YR is up +.125 today at 108.010.
- The 10YR has broken through the 100-day EMA of 107.92 with the next key level the 50-day EMA at 108.06.
- China’s 2YR bond future is going in the other direction, down -0.02 at 102.42.
- Having traded above the 20-day EMA at 102.44 briefly, the 2YR now sits below that trend line.
- Having finished last week lower in yields, the CGB10YR is better bid this morning, -0.5bps lower in yield
JGBS AUCTION: Poll: 2-Year JGB Auction
*JAPAN 2Y GOVT BOND AUCTION MAY HAVE 100.055 LOWEST PRICE: POLL – BLOOMBERG
