Key data from Australia and China will be released in the early hours of Thursday, followed by inflation figures from the U.S. later on in Thursday’s session. Thursday’s data releases could have a big impact on the Aussie dollar, especially the AUD/USD pair.
The U.S. consumer price index measure of inflation rose 0.1% month-over-month in July but failed to match expectations of a 0.2% rise as we had envisaged in our Australian dollar/U.S. dollar (AUD/USD) currency pair report earlier.
Arguably the most important data for this week will be released later on today: the U.S. Consumer Price Index. Both headline and core CPI are expected to have risen 0.2% month-over-month in July. On a year-over-year basis, CPI is seen rising to 1.8% from 1.6% in June, while core CPI is expected to have remained unchanged at 1.7% last month. If the Producer Price Index (PPI) measure of inflation is anything to go by then CPI may also miss expectations. If so, the U.S. dollar could resume its downtrend, which could underpin buck-denominated precious metals further in these times of heightened geopolitical uncertainty.
The New Zealand dollar has slumped in recent weeks, first on the back of poor NZ data and then after the RBNZ delivered a dovish policy statement, in which it suggested that monetary policy will remain accommodative for a long time.