On Wednesday, we have the Australian monthly CPI indicator. This is expected to come in at 5.1% down from the prior reading of 5.4%. The way that inflation readings are understood by the markets is that high inflation readings will mean interest rate expectations increase, which will lift the country’s currency. In this case, the Reserve Bank of Australia seems to have a terminal rate of just over 4.20%. Its current interest rate is at 4.10%, which means a high inflation reading on Wednesday is likely to lift the Australian dollar against the New Zealand dollar as investors expect a higher terminal rate from the ... (full story)