Quay Mid-Day Market Update

The Australian Share market has opened the session in negative territory on the back of a weak Wall Street lead, weakness in crude oil while there a cautious mood ahead of the much anticipated local inflation data. There was a little weakness in the market yesterday afternoon and this negative momentum continued this morning. Inflation data released at 11:30am showed headline CPI data at 1.3% year on year and 0.2% quarter on quarter in line with expectation. The RBA Trimmed Mean CPI was +0.6% QonQ and +2.3% YoY which was slightly above expectations but still well within the RBA inflation target range of 2-3%. The Australian dollar rising on the back of the data possible indicating that the RBA will again hold of cutting rates in May. Given the outperforming employment data from last week adding with today’s data and the federal budget expected on May 12, we could see the central bank reluctant to make a cut and sit back and await further data. For the entire wrap please visit (VIEW LINK)