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ForexLive Asia-Pacific FX news wrap: Awaiting the US inflation data

It
was a light day for news and data. From Japan we had the latest
machine order data, more in the bullets above on this, but it was a
disappointment and the Cabinet Office downgraded its view on the
series saying the pick-up that had been seen was stalling.

On
the central bank front, Federal Reserve Board Governor Lisa Cook
spoke, saying a soft landing would be more likely “when policy
easing began with inflation already close to target and when there
was a relatively firm growth backdrop”. ‘Close to target’ is
the key here, reaffirming the Fed won’t be waiting until 2 % is hit
before easing.

The
Bank of Korea left its benchmark rate unchanged at 3.5%. In its
statement the Bank dropped the phrase ‘upside risks to inflation
forecasts have increased’, increasing expectations of a rate cut
(markets are expecting a cut sometime between August and October).

Major
FX tracked small ranges only. There was a bout of US dollar weakness.
No fresh catalyst was obvious.

US
CPI data is due today at 1230 GMT, 0830 US Eastern time – check out
the post above on ‘ranges of estimates’ to be prepared for any
surprise that might surface.

US
political drama/circus will get renewed impetus on Thursday afternoon
US time with US President Biden holding a press conference after the
NATO meeting.

AUD/USD hit a six month high:

This article was written by Eamonn Sheridan at www.forexlive.com.

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