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[ForexAddict]

The Australian dollar surges across the board today after the release of much stronger than expected Producer Price Index.
The acceleration in produce price was much faster than expectation of 1.0% qoq and 3.9% yoy. While RBA's message was clear that the tightening cycle has paused, the strong inflation number today raised some speculation that RBA might be forced to resume rate hike on deterioration in the inflation outlook. Focus will turn to Wed's CPI report which is expected to show acceleration from 3.0% yoy to 4.0% yoy in Q1 and the Aussie will be boosted again in case of upside surprise in this data.

Sterling gives up some gains after edging higher to 2.0029 earlier today. BoE is expected to announce a plan to swap around 50b pounds of government bonds for mortgage-backed securities to lower credit costs.

The Japanese yen continues to trade with an undertone today. Though, there is not massive selling even though Asian stock markets are generally higher.

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