AUD underperforms on sluggish CPI, but........>

FOREX: AUD underperforms on sluggish CPI, but major pairs directionless

-Aussie is the poorest performer in G10 today as Q2 CPI numbers disappointed

overnight: 0.4% vs. Exp. 0.5%. AUD/USD's dropped on release, touching $0.7392,

but failed to make any attempt on yesterday's $0.7360 lows. The pair has

recovered from the lower levels of the session to trade only in minor negative

territory against the USD ahead of the NY crossover.

-For the second consecutive session, CNH and CNY drove price action in the

European / Asia crossover, with USD/CNH pulling back further and denting the

dollar across the board. The week's USD/CNH lows remain in tact, however, at Cnh

6.7558.

-Outside of the AUD, G10 FX is somewhat directionless, with markets awaiting any

outcome (however improbable) from the trade talks due to be held between

President Trump and EU's Juncker. They're due to discuss tariffs, with the EU

hoping to avoid a new round of tariffs on European car imports headed to the US.

-US New Home Sales remains the sole release on the data calendar, with markets

turning their focus to tomorrow's ECB rate decision.