COLOMBIA: "Colombia’s Fiscal Rule Should Adapt to Changing Reality: Guevara"-BBG

AUD/USD got to highs of 0.6247 post the softer than expected US CPI print. We track near 0.6225/30 in early Thursday dealings, up around 0.50% for Wednesday's session. The A$ was the second best performer in the G10 space after yen's 0.90% rise. The USD BBDXY index fell by 0.20% for Wednesday's session and is back near 1311.

• For AUD/USD technicals Wednesday's gains are considered corrective. We did pierce the 20-day EMA (0.6236) but couldn't sustain this breach. Note the 50-day EMA is higher at 0.6351. Earlier cycle lows this week were at 0.6131.
• US yields were weaker across the board post the Dec core CPI 3M run rate of 0.225%, which was the lowest since September. The Tsys benchmarks fell 10-15bps across the curve, with the 10yr back to 4.65%. The first projected rate cut moved forward on the calendar to July after retreating to as late as December this week.
• Equity sentiment was better, EU markets up 1%, SPX +1.80% in the US, while the Nasdaq rose nearly 2.5%. This didn't see AUD/JPY higher though, with the pair holding sub 97.50. Lower core yields, coupled with rising BoJ hike odds for next week, driving yen outperformance.
• Commodity indices rose, the Bloomberg aggregate index up 1.40%, the base metals +0.66%.
• On the data front today, we have Jan inflation expectations, along with Dec jobs data. The market expects a 15k rise in jobs (prior +35.6k), and the unemployment rate to edge up to 4.0% from 3.9% in Nov.