OK, the real quick recap is very low inflation pressure in Australia – there is no inflation-related reason apparent for the RBA not to cut rates, should they so wish. Given the weakening growth in China the prospects for a near-term rate cut (May or June) have increased somewhat. the RBA meets next on May 7.

Q1 CPI came in at +0.4% q/q (2.5% y/y)

  • Prior +0.2% (2.2% y/y)
  • Expected was +0.7% (2.8% y/y)

Q1 Trimmed Mean CPI came in at +0.3% (2.2% y/y) (The trimmed mean is the measure the RBA focus on)

  • Prior +0.6% (2.3% y/y)
  • Expected was +0.5% (2.4% y/y)

Q1 Weighted Median CPI +0.5% (2.6% y/y)

  • Prior +0.6%, revised from +0.5% (2.5% y/y, revised from 2.3%)
  • Expected was +0.5% (2.4% y/y)

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Impact on AUD/USD is a small marking down. Its currently 1.0242/47.