The Australian dollar is crushed after Q1 CPI data disappointed
The aussie is down by nearly 1% against the dollar after Australian Q1 CPI disappointed expectations, which spurred bets of a RBA rate cut in its May meeting. Cash rate futures now see a 71.0% probability of a rate cut in two weeks' time and that's a significant jump in pricing from just the 14.2% probability yesterday.
The decline in the aussie also helped to drag the kiwi lower with NZD/USD falling from 0.6650 to near 0.6620 levels currently.
Meanwhile, most other major currencies are more or less unchanged against the dollar as narrow ranges are still prevailing. The loonie is a little weaker as oil prices retreat from their overnight highs but also as the Bank of Canada meeting is eyed later today.
Treasury yields continue to sit heavily, with 10-year yields down by 1.3 bps to 2.55%, similar to trading yesterday. That's a bit of a mixed tone as equities held up well in Wall Street but is seen a little lower in trading today. Asian stocks are a tad lower, mirroring sentiment seen in US equity futures for the time being.
For risk trades, it's all about earnings as we'll have a plenty of big ones still to report this week. Of note today, we'll have Facebook and Microsoft in yet another set of key releases for tech stocks after Twitter crushed expectations overnight to post 15% gains.