Daily Digest Market Movers: Australian Dollar appreciates after hotter CPI data
- Luci Ellis, the chief economist at Westpac and former Assistant Governor (Economic) at the Reserve Bank of Australia, notes that inflation slightly exceeded expectations in the March quarter. Westpac anticipates that the Board will keep interest rates unchanged in May and has adjusted their forecasted date for the first rate cut from September to November this year.
- Australia’s Consumer Price Index (CPI) rose by 1.0% QoQ in the first quarter of 2024, against the expected 0.8% and 0.6% prior. CPI (YoY) increased by 3.6% compared to the forecast of 3.4% for Q1 and 4.1% prior.
- Australia’s Monthly Consumer Price Index (YoY) rose to 3.5% in March, against the market expectations and the previous reading of 3.4%.
- The S&P Global US Composite PMI decreased in April, indicating only a modest expansion in the nation's private sector. This was the weakest expansion since December. Activity saw slower growth rates in both the manufacturing and service sectors, with expansions easing to three- and five-month lows, respectively.
- In April 2024, the Judo Bank Australia Composite Output Index rose, marking the third consecutive month of expansion in the Australian private sector and the fastest pace since April 2022. Although the service sector primarily drove business activity growth, the rate of decline in manufacturing output slowed to its lowest level in eight months.
- The China Securities Journal indicated on Tuesday that the People's Bank of China (PBoC) plans to reduce the Medium-term Lending Facility (MLF) rate in an effort to decrease funding costs. The next MLF rate setting is scheduled for May 15. This move might potentially benefit Australian exports to China, considering the strong trade ties between the two nations.
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