April CPI fell below forecasts, easing pressure on the RBA, while RBNZ and PBOC policy shifts draw global attention.
Australia’s annual inflation rate slowed to 4.2% in April, below the 4.4% consensus and down from March’s 4.6%. The softer print suggests easing price pressures, though services inflation remains sticky, keeping the Reserve Bank of Australia cautious on rate cuts.
Markets had anticipated a sharper decline, with prior months showing persistent inflation above the RBA’s 2-3% target. The data follows mixed signals from global central banks, including the RBNZ’s expected hawkish hold and the PBOC’s firmer-than-expected USD/CNY fix at 6.8291, defying forecasts of 6.7883.
Equities rallied on AI-driven optimism, with the S&P 500 and Nasdaq hitting records, while oil prices dipped on hopes of a US-Iran deal, though geopolitical risks linger with a 37% implied chance of $100 oil in three months.