• Fed gyrations. US Fed cut rates but Chair Powell pushed back on views it will go again in December. Higher US yields helped the USD intra-day.• AU CPI. Sizeable upside surprise in Q3 AU inflation. RBA expected to stay on hold. We think this should be AUD supportive over the medium-term.• Macro events. BoJ meets today. ECB holds court tonight. Also on the radar is a meeting between President’s...

So much for the inflation dragon being slayed. The Q3 Australian CPI data was a jolt to the system. Headline inflation rose 1.3% in Q3 to be 3.2% higher compared to a year ago, while the trimmed mean (the RBA’s preferred gauge which gives a better guide to inflation persistence) rose 1% in the quarter or 3%pa. Inflation momentum has turned up with 3-month and 6-month annualised run-rates at levels...

• Positive vibes. Gains across the tech-sector pushed US equities to record highs. Base metals rose. AUD outperforms ahead of AU CPI data.• AU inflation. Q3 CPI due today. Acceleration in core inflation forecast. RBA rate cut expectations have been pared back. This might have further to go.• US Fed. Another US Fed rate cut anticipated tomorrow morning. Guidance will be important. USD volatility likely...

• Upbeat tone. Softer US inflation, solid PMIs & positive US/China trade talks support risk sentiment. Equities rose. AUD & NZD strengthen.• US Fed. Upside US inflation risks fading while downside jobs risks rising. US Fed looks set to cut rates this week & should keep door open to more.• AU inflation. Gov. Bullock speaks tonight, Q3 CPI due Weds. Monthly data points to uptick in Q3 inflation....