Dollar Softer, But Decline Slows

The USD decline extended into the Wednesday session, but has slowed slightly, with the DXY yet to test yesterday's lows. AUD and NZD are outperforming following the fresh record highs printed in US equity markets yesterday

UK July inflation was higher than expected, with both headline and core figures coming in above forecast. Further evidence of underlying inflationary pressures emerged from a new experimental data series from the ONS, which showed spending patterns show prices may have risen faster than headline metrics suggest. GBP was trading with a buoyant tone into the release, but inched to a new session high at $1.3267 in early Europe.

AUD demand keep Antipodean FX at the top of the G10 table today, lifting AUD/USD to a new multi-year high at $0.7274 in early trade. This opens the next upside level at $0.7284.

Canadian CPI is the data highlight Wednesday, with CPI seen slowing to 0.4% M/M and 0.6% Y/Y. FOMC minutes are also due after the European close. Fed's Barkin is due to speak at the National Economists Club.