Lifted As US CPI Decelerates

A weaker finish for the greenback saw AUD/USD finish the session with gains, USD fell back as monthly consumer-price inflation slowed in July, while core CPI inflation decelerated marginally more than forecast, The pair last up 1 pip and hugging a tight range.

• Coronavirus related headlines are expected to continue to be a focus, CBA released a note yesterday that said lockdowns across Australia's could push back economic growth by about half a year before it accelerates again through 2022.
• Elsewhere PM Morrison has called for an annual economic dialogue between the trade and finance ministers of the US and Australia to help protect against coercive economic and trade practices must be part of maintaining regional security.
• From a technical perspective AUD/USD rallied into the close, with prices topping the Monday highs to trade at the best levels since last week. Bulls need further progress, however, to cement any near-term recovery, with 0.7416 the first notable level of resistance ahead of 0.7429, the Jul 19 high. For the bearish outlook to firm, markets need to slip through this week's low of 0.7316 ahead of the 0.7290 bear trigger.
• It is a light economic docket today with consumer inflation expectations due later in the session, markets will look ahead to labour market data next week. Participants will also keep an eye on earnings from AMP and NAB.