July 23: Asian session
Asian shares rose for a third day, with the regional benchmark index extending a 6-year high, as lower US inflation data damped concerns interest-rate increases will be brought forward. MSCI Asia Pacific Index outside of Japan gained 0.4%. Nikkei 225 slid by 0.1%. USD/JPY slid below 101.40.
AUD/USD jumped from the $0.9380 area to $0.9435, inspired by the better-than-expected Q2 inflation data in Australia. CPI came in line with forecast at 0.5%, while trimmed mean CPI rose from 0.6% to 0.8%. Higher inflation makes it more difficult for the RBA to shift from its current neutral stance to dovish. NZD/USD strengthened to $0.8680.
EUR/USD is trading in the $1.3460 area after it lost about 60 pips yesterday falling to an 8-month minimum. GBP/USD edged up to $1.7075 from yesterday’s low at $1.7040.