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J&T Express (01519.HK) rebounded in the afternoon, narrowing its losses to 5.01%; the company responded to the investigation: J&T Express China attaches great importance to this matter, sincerely accepts it, and will resolutely obey and fully cooperate with the relevant authorities in carrying out various investigations in accordance with laws and regulations.On June 11th, J&T Express responded to the State Post Bureaus investigation into the company, stating that J&T Express China attaches great importance to the matter, sincerely accepts, and will resolutely comply with and fully cooperate with the relevant authorities in carrying out all investigations in accordance with laws and regulations. J&T emphasized that safe production is a red line that the company cannot cross. J&T China has deeply reflected on its practices in light of important instructions regarding safe production, and deeply feels that as the brand headquarters, it has fallen short in fulfilling its unified management responsibility for safety assurance for some companies operating under the "J&T Express" trademark, trade name, and waybills. The lessons learned are profound. J&T China sincerely accepts supervision.The yield on Japans 5-year government bonds fell 1.5 basis points to 1.920%.The yield on Japans 40-year government bonds rose 3.0 basis points to 3.765%.June 11th - Analysts at BMO Capital Markets stated that some members of the European Central Banks (ECB) Governing Council may be thinking, "Weve waited long enough. Lets act!" And they will indeed act, meaning they will raise interest rates on June 11th. Since the outbreak of the Iran-Iraq war, several other central banks, such as the Reserve Bank of Australia and the Norwegian central bank, have tightened monetary policy. But the ECB will be the first G7 central bank to do so. The ECB previously stated that the Eurozones inflation rate and monetary policy were "in good shape," but now the situation is quite different. Concerns about the duration of the Iran-Iraq war and the sustainability of a potential peace agreement, and how these factors will affect inflation expectations and wage demand, are prompting the ECB to shift towards a tighter policy. Eurozone inflation has not eased since the last meeting. Adding to the woes, the risk of economic stagnation is increasing. The ECB must proceed cautiously, but the risk of further rate hikes remains, potentially as early as July.

When Will the Australian Consumer Price Index Be Released and How Will It Affect the AUD/USD?

Daniel Rogers

Apr 27, 2022 09:54

Today, at 0130 GMT, Australia's important first quarter Consumer Price Index data will be released. The Australian central bank has abandoned its patient attitude and declared that monetary policy will be data-driven. Quarterly inflation in Australia is projected to exceed the RBA's objective at the top end.

 

Westpac analysts stated that "given the conclusion of grants, the spike in house purchase prices is projected to play a significant influence."

 

"Automotive gasoline and food prices are also anticipated to play a significant role."

 

Westpac anticipates a 2.0 percent quarter-on-quarter (QoQ) and 4.9 percent year-on-year (YoY) increase in the headline CPI (market median 1.7 percent and 4.6 percent ).

 

"Continued disruptions to supply chains and the persistent strength of domestic demand imply more widespread inflationary pressures," the analysts wrote. "This supports a 1.2 percent QoQ (3.4 percent YoY) increase in the trimmed mean measure (in line with the median).

 

According to NAB analysts, they anticipate a 1.2 percent quarter-on-quarter increase in the trimmed mean and a 3.4 percent year-on-year increase in the trimmed mean. 3.4 percent as a post-2009 high, much over the RBA's 2-3 percent target range.

 

Meanwhile, ANZ Bank analysts forecast Australian Q1 headline inflation of 1.8 percent quarter on quarter, bringing annual inflation to 4.7 percent - the highest level since the September quarter of 2008.

 

"The increase is not just due to increasing gasoline and food prices," the researchers observed. 'Adjusted mean inflation is estimated to be 1.1 percent quarter on quarter and 3.4 percent year on year. This will be the first time since Q1 2010 that core inflation will exceed the top of the RBA's target zone."

 

"Despite this, we continue to expect the RBA to wait until June before raising the cash rate target, with the April meeting minutes indicating that the board would prefer to see both inflation and wage data before making a decision."

How Might CPI Affect the AUD/USD Exchange Rate?

Although the AUD/USD pair is technically bearish, positive inflation data could spark a recovery. The AUD/USD pair did not perform well overnight and was locked below an hourly barrier, sliding to the south on the strength of the US dollar.

 

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However, the daily chart indicates that the price may be due for a correction, and the above analysis highlights the upside structure target areas for a retracement. A positive surprise in the data would almost certainly support the thesis and energise the bulls. If, on the other hand, the data fails to solidify the RBA's prospects for a near-term rate hike, the Aussie is projected to come under pressure and break through the barriers for a test of 0.71 before the 0.7080/90 early February 2022 areas.

Concerning the CPI

The Consumer Price Index, which is published by the Reserve Bank of Australia and republished by the Australian Bureau of Statistics, is a measure of price changes calculated by comparing the retail prices of a representative basket of goods and services. Inflation drags down the purchasing power of the AUD. The CPI is a critical indicator for determining inflation and changes in consumer spending trends. A positive (or bullish) value for the AUD is considered positive, while a negative reading is considered bad (or Bearish).


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