AUD Off Post-CPI Lows

AUD has trimmed some of its post CPI losses, the AUD was down as much as 1% as May CPI was weaker than forecast, before paring losses to sit ~0.6% softer.

• AUD/USD prints at $0.6640/45, the pair found support below $0.6627, 61.8% retracement of May 31 to Jun 16 rally. The next support level is $0.6610 the Jun 6 low. AUD/NZD sits unchanged, the cross found support ahead of the $1.08 handle and erased losses of as much as 0.4%.
• Kiwi is the weakest performer in the G-10 space at the margins. NZD/USD is down ~0.7% and last prints at $0.6120/25. The pair sits a touch above the support at the low from 23 June ($0.6117), a break through here opens the low from June 8 ($0.6031).
• Yen is a touch firmer, however ranges have been narrow with little follow through. Early in the session Japan's Kanda said that Japan will respond appropriately to excessive FX moves.
• Elsewhere in G-10, EUR and GBP are down ~0.1%. NOK is ~0.3% softer, however liquidity is generally poor in Asia.
• Cross asset wise; US equity futures are pressured coming after the WSJ reported that the US is considering new curbs on chip exports to China. E-minis are down ~0.2% and NASDAQ futures are down ~0.4%. BBDXY is ~0.1% firmer and US Tsy Yields are a touch softer across the curve.
• The data calendar is light in Europe, today's session is highlighted by a panel with Fed Chair Powell, ECB's Lagarde, BOJ's Ueda and BOE's Bailey at the Sintra conference.