Key events ahead - Westpac

Analysts at Westpac explained the key events ahead for the day after RBA minutes.

RBA minutes preview - what to expect in AUD/USD?

Key Quotes:

"The RBNZ’s 2yr inflation expectations, out at 1pm Syd/11am Sing/HK, will be important for NZ monetary policy and market pricing. In Q1 it dropped from 1.85% to 1.63%, sending NZD/USD a startling 50 pips lower. A fall to 1.5% in Q2 would be seen as a strong argument in favour of a rate cut at the June meeting. Futures are tipping a 2% rise in whole milk powder at the GlobalDairyTrade auction, held as usual during the Lon/NY session.

UK Apr CPI is expected at 0.3% m/m, steady at 0.5% y/y. Core is seen to pull back to 1.4% y/y after a 1.5% print last month.

In the US, consensus for Apr headline CPI is a rise to 0.3% m/m and 1.1% y/y, supported by higher gasoline prices. Excluding food and energy, the median for inflation is 0.2% m/m, y/y a tick lower at 2.1%. Forecasters expect Apr housing starts up 3.3% m/m and to remain near highs since 2009. Industrial production will also be released. Fed’s Williams and Lockhart are interviewed on the economy while Kaplan takes audience and media questions at a forum hosted by the Dallas Fed (all are best thought of as centrists)."