China GDP grows 6.70% in Q1 2016

Unemployment rate in Australia fell to its lowest levels in March, since September 2013, touching 5.70%, according to data released by the Australian Bureau of Statistics. Analysts expected the unemployment rate to rise to 5.80%. There was a net gain of 26,100 jobs but most of the gains came from part-time positions while full time jobs fell by 9000 with mining and manufacturing seeing a contraction but as expected with the ongoing shifts in the Australian economy rebalancing itself. Better than expected unemployment rate is positive for the RBA and takes away any pressure of rate cuts and highlighting the fact that the Australian labor market was reasonably healthy.

Consumer prices in the US increased at a slower than expected pace in March showing that underlying inflation had slowed. Core CPI excluding food and energy increased 0.10% in March on a month over month basis, slowing from 0.30% increase in February while on a yearly basis, core CPI increased 2.20%, slower than the previous month. The headline CPI was also weaker, rising 0.10% in March, while slowing to 0.90% on a yearly basis, following 1.0% increase seen previously. The soft inflation data is likely to see the Federal Reserve maintain its cautious outlook on inflation with the interest rate unlikely to go nowhere for the time being.