July 13, 2022 09:34 GMT
- Markets are generally treading water ahead of the key US data releases later today, with JPY marginally the poorest performer in G10 ahead of the NY crossover. The USD/JPY outlook remains bullish, but prices hold below the cycle highs printed earlier in the week at 137.75.
- The greenback is moderately weaker as equity markets look more stable after Tuesday's late sell-off. Futures markets across the US are indicating a positive open on Wall Street later today, helping currency markets adopt a modest risk-on tone.
- AUD is extending the recovery posted off the week's low yesterday, putting the pair closer to 0.68. Nonetheless, AUDUSD maintains a bearish tone and 0.6685, the Mar 9 2020 high, remains the key support. On the upside, initial firm resistance is seen at 0.6881, the 20-day EMA.
- US inflation data takes focus going forward, with markets expecting CPI to rise 8.8% on the year and 1.1% on the month. Core price rises are expected to decelerate, dropping to 5.7% from 6.0% in May. MNI's full CPI preview found here: https://marketnews.com/homepage/mni-us-cpi-preview...
- Elsewhere, the Bank of Canada announce rates later today, with markets expecting the Bank to raise rates by 75bps to 2.25%. MNI's full preview here: https://marketnews.com/mni-boc-preview-jul-22-eyei...