USD Extends Move Higher

The greenback has continued its move higher post-CPI. AUD is bottom of the G10 pile so far, AUD/USD is down 10 pips, AUD is likely to remain under pressure from the coronavirus situation in NSW.

• NZD/USD is down 6 pips, markets await the RBNZ rate announcement later in the session (our preview here) there is potential for policymakers to acknowledge the need to tighten policy sooner than projected before.
• USD/JPY is flat, the Reuters Tankan survey showed manufacturers' business confidence rose in July to hit a more than two-and-a-half-year high at 25 from 22 in June. Later final industrial production reading for May and accompanying capacity utilisation print are due.
• Offshore yuan is weaker with USD/CNY some 71 pips higher. Trade tensions continue to simmer, US and UK trade ministers met Tuesday and agreed to collaborate in addressing anti-competitive practices of China.
• Elsewhere the won has come under pressure from the greenback despite strong unemployment figures, USD/KRW rose above 1150 to the highest level since October 2020 as markets anticipate a slowdown from recent lockdown measures.