| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 00:30 | Australia | Westpac Consumer Confidence | July | 1.7% | -0.3% | -1.1% |
| 01:30 | Australia | National Australia Bank's Business Confidence | June | -2 | -5 | 4 |
During today's Asian trading, the US dollar consolidated against major currencies as investors took a wait-and-see attitude ahead of Fed Chairman Powell's statements.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.01% to 105.01. Powell will deliver a semi-annual monetary policy report to the Senate Banking Committee on Tuesday and The House Financial Services Committee on Wednesday. The markets hope that his statements will bring more clarity about the trajectory of interest rates in the United States. According to the CME FedWatch Tool, markets see a 4.7% probability of a 25 basis point rate cut at the Fed meeting in July, a 77.1% probability of a rate cut in September, and a 86.7% probability of monetary policy easing in November. Meanwhile, on Thursday, the Commerce Department will release CPI data for June. Economists expect annual inflation in the United States to fall from 3.3% in May to 3.1% in June. This will mark the lowest reading since January and is expected to strengthen markets' bets that the Fed will approve the first of its long-awaited interest rate cuts at a meeting in mid-September.
The euro remained near a 4-week high against the US dollar as investors came to terms with the results of the French elections, which pointed to a potential political impasse, but reduced fiscal concerns stemming from outright far-right or leftist victories.
The Australian dollar rose 0.1% against the US dollar, while investors analyzed mixed Australian data. Data released by Westpac Banking Corporation and the Melbourne Institute showed that consumer sentiment in Australia worsened in July, reaching a 6-month low, as concerns about a possible increase in borrowing costs offset the positive from the prospect of tax cuts and government relief on power bills. The consumer sentiment index fell 1.1% to 82.7 points after rising 1.7% in June. It was the fifth time of decline so far this year. The index has held below 100 since March 2022. Meanwhile, separate data showed that the NAB business confidence index rose to 4 points in June from -2 points in May. It was the highest level since January 2023. However, business conditions, which measure sales, employment and profitability, eased 2 points to 4, below their long-run average.