Asia Summary and Highlights 2 August
Australian July monthly CPI 3.5 % y/y
U.S. weighs further trade escalation after Canada sets retaliatory tariffs
Asia Session
The Australian July monthly CPI arrived hotter than expected at 3.5 % y/y. While it continue to moderate from the 3.8% y/y in previous month, the pace of moderation is weaker than expected. Trimmed mean CPI shows no change from June. AUD/USD is trading 0.3% higher at 0.7185 as anticipation of another RBA hike increases on the hot CPI release. NZD/USD is trading 0.35% lower while USD/CAD rises 0.15% on soft oil.
It is reported that U.S. weighs further trade escalation after Canada sets retaliatory tariffs. Looks like Trump is redirecting the focus towards Canada after trying to tie up loose ends in the Middle East. One thing for sure is Trump will be aiming to seal some deals before mid term to gain votes. USD/JPY is trading 0.1% lower at 159.02. Else, EUR/USD is down 0.07% and GBP/USD is down 0.1%.