RBA Minutes Put the Aussie Dollar in Focus ahead of German Wholesale Inflation Numbers

Earlier in the Day:

It was a busier start to the day on the economic calendar this morning. The Japanese Yen was in action in the early hours. On the monetary policy front, the RBA meeting minutes and the PBoC loan prime rates decision will also be in focus later this morning.

For the Japanese Yen

Inflation drew interest in the early hours of this morning.

According to the Ministry of Internal Affairs and Communication, inflationary pressures returned in June. Consumer prices rose by 0.2% year-on-year, reversing a 0.1% decline from May. Economists had forecast for consumer prices to hold steady.

The core annual rate of inflation ticked up from 0.1% to 0.2%, which came in ahead of a forecasted 0.1%.

In response to the numbers, the Japanese Yen moved from ¥109.507 to ¥109.539 against the Greenback. At the time of writing, the Japanese Yen was down by 0.11% to ¥109.552 against the U.S Dollar.

Elsewhere

At the time of writing, the Aussie Dollar was down by 0.04% to $0.7341, with the Kiwi Dollar down by 0.13% to $0.6935.

The Day Ahead

For the EUR

It’s a quiet day ahead on the economic data front. German wholesale inflation figures will be in focus, with little else for the markets to consider.

As the markets continue to monitor inflationary pressures, a further pickup in wholesale inflationary pressures would drive EUR support.

While the FED has talked of a willingness to allow inflation to go hotter for longer, the ECB has simply lifted its inflation target to 2%. Ahead of Thursday’s press conference, we can therefore expect EUR sensitivity to the numbers.

Away from the economic calendar, however, the continued global rise in new COVID-19 cases remains a negative.

At the time of writing, the EUR was down by 0.07% to $1.1792.

For the Pound

It’s another quiet day ahead on the economic calendar, with no major stats from the UK to consider later today.

The lack of stats will continue to leave COVID-19 in focus, which has become a major area of interest for the markets.

At the time of writing, the Pound was down by 0.03% to $1.3671.

Across the Pond

It’s a relatively quiet day ahead on the economic calendar. Housing sector data for June will be out later in the day.

We don’t expect the numbers to influence the Dollar or the broader market, however.

On Monday, the Dollar Spot Index rose by 0.22% to sensitivity 92.891.

For the Loonie

It’s also quiet day ahead on the economic calendar, with no material stats to provide the Loonie with direction.

A lack of stats will continue to leave market risk sentiment as the key driver on the day.

At the time of writing, the Loonie was up by 0.02% to C$1.2748 against the U.S Dollar.

For a look at all of today’s economic events, check out our economic calendar.