AUD/USD lower after the soft Australian data

Some of the 'partials' are in this post, the data released a few minutes aog:

• Australian data Q1 Business Inventories +1.3% q/q (expected 0.7%)

While the consensus leading into this data was that Q1 GDP (due Wednesday) would be 0.2% q/q this data suggests it may be weaker. perhaps Bank of America will be on the money with their call:

• BoA expecting 0.1% q/q & 1.1% y/y

While the RBA is trying to drive inflation lower by holding the cash rate high, and some even expect further rises:

• Here's a forecast for two more Reserve Bank of Australia rate hikes still to come

The weak economy is another factor that will give the reason to have to think very hard indeed about further tightening. A The weak economy risks losses for jobs ahead. The RBA is keen to preserve the gains it has seen in the labour market.

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