Deutsche Bank analysts highlight that Australian Consumer Price Index (CPI) rose 4.6% year-on-year in March, slightly below expectations, while trimmed mean inflation stayed above the Reserve Bank of Australia's (RBA) target band.
The US Dollar (USD) posts moderate gains against a basket of majors for the second consecutive day on Wednesday and remains close to two-week highs in the area of $99.00.
Commerzbank’s Volkmar Baur explains that softer underlying inflation in Australia has reduced market confidence in another Reserve Bank of Australia (RBA) rate hike next week, after two consecutive moves in February and March.
Dow Jones futures advance 0.12%, trading near 49,350 during the European hours on Wednesday, ahead of the United States (US) regular opening. Meanwhile, S&P 500 and Nasdaq 100 futures advance 0.09% and 0.33% to near 7,180 and 27,260, respectively.
The Bank of Canada (BoC) is widely expected to keep its monetary policy rate unchanged at 2.25% for its fourth consecutive meeting on Wednesday, requesting more time to assess the impact on inflation and economic growth from the US-Iran war.
The Japanese Yen (JPY) trades cautiously against the US Dollar (USD) at around 159.65 during the European trading session on Wednesday. The USD/JPY pair is expected to remain on the sidelines, with investors awaiting the Federal Reserve’s (Fed) monetary policy announcement at 18:00 GMT.
