April’s CPI rose by 3.4% YoY, which is down from 3.6% last month but slightly higher still than the 3.3% which most economists and analysts had predicted. Many felt that if CPI got close to 3.0% then the Chinese government would consider lowering bank’s RRR. A lower RRR is seen as growth-positive and therefore AUD positive.
The AUD is slightly lower after the data on the reduced expectations of an RRR cut.
