The Australian dollar was down 0.27 percent by midday on Wednesday trading at 0.7518 after economic data was released earlier in the trading session. Australian consumer price inflation scarcely topped 2 percent in Q1 for the first time since 2017, creating indicators that the danger of deflation may be passing. The Reserve Bank of Australia’s preferred measures of underlying inflation rose to an annual pace of 1.8 percent in Q1 2017, up from 1.5 percent and comfortably in-line with analyst expectations. Core inflation is not expected to exceed 2 percent until late 2018 and the RBA has repeatedly warned of the dangers of trying to expedite the process. The country’s consumer price index (CPI) rose 0.5 percent in Q1 to 2.1 percent, the fastest annual rate since 2014.

News Expected in the United States

Later on Wednesday U.S. President Donald Trump is expected to propose steep corporate tax cuts in his latest effort to regain momentum on economic policy. A joint news conference with Treasury Secretary Steven Mnuchin and National Economic Director Gary Cohn will be held around 1:30pm EST from the White House, and it is expected that they will announce a cut of corporate income tax from 35 percent to 15 percent and to reduce repatriation taxes on offshore earnings to 10 percent from 35 percent.

The Nasdaq Composite hit a record high on Tuesday, breaking the 6,000 mark to hit 6,036.02, and the S&P and Dow toyed with their recent highs, as earnings reports showed growth and traders continued to enjoy the rally prompted by Macron’s electoral victory.

The dollar traded slightly higher on Wednesday morning against the yen, to 111.33, while it struggled against the euro, trading down slightly at $1.0942.