As I expected and traded against, the CPI print this morning came in well below expectations, with the Aussie dollar creamed as this opens the door for the RBA to ease later in the year – or even earlier!
But the big winners are stocks, as price appreciation on the local bourse is DEPENDENT upon a easing cycle from the RBA, rising over 50% from a 4.5% to 2% easing cycle before stalling recently as the RBA held and the Aussie dollar soared, sinking stocks:
And this morning the ASX200 is up nearly 1% already as the door is open for another leg in an easing cycle as the RBA has no concerns now about inflation. Odds of a rate cut have jumped from 16% to 40% at the May meeting:
Advertisement
