Market Insights Podcast – BOJ, AU inflation, US PCE and US Magnificent 7 stocks earnings in the focus

OANDA Senior Market Analyst Kelvin Wong joins Jonny Hart to discuss this week’s key economic data and events. Firstly, Australia’s monthly CPI (March) out on Wednesday (24 Apr) is expected to come in at a similar annualized pace of 3.4% as printed in February, its lowest reading since November 2021. Another set of soft inflation numbers is likely to keep the hawkish vibes in RBA in check.

Secondly, we will have Bank of Japan’s monetary policy meeting and the release of its latest outlook report on the Japanese economy on Friday (26 April), it is likely that BOJ may revise its projected core-core CPI rate to 2% from 1.9% for fiscal years 2024 and 2025 due to better than expected wage negotiation results between unions and employers. Any projected print above 2% for core-core CPI may increase the odds of the next interest rate hike to come in much earlier in July.

Thirdly, the US Fed preferred inflation gauge, PCE data will be released on Friday where the consensus is “optimistically”  expecting a lower core PCE reading of 2.6% y/y for March, down from 2.8% y/y in February.

Finally, big earnings releases week for the US stock market as four of the mega cap “Magnificent 7” group will announce their respective earnings numbers; Tesla (Tues, 23 April), Meta (Wed, 24 Apr), Microsoft, and Alphabet (Thurs, 25 April).

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