The focus on trading in the New York session yesterday was on the consumer price index (CPI) data of the United States (US) which became the main character to watch this week.
Looking at the report, the US annual inflation reading decreased to 2.9% for July compared to the forecast to remain at the level of 3.0% as the previous figure.
The latest reading is the slowest increase in inflation below the 3.0% level for the first time since March 2021.
However, investors did not see the aggressive movement displayed by the US dollar despite appearing to suffer a slight depreciation.
This is likely to be driven by monthly inflation readings which showed an increase to 0.2% for July which was in line with market forecasts, compared to the previous reading of -0.1%.
The core inflation figure also came in line with forecasts rising to 0.2% from 0.1% previously.
Even so, expectations for interest rate cuts by the Federal Reserve (Fed) remain high after US annual inflation continues to show a decline.
The only question that is hovering among market players is the rate of cut that will be done either 25 or 50 basis points.
The Euro managed to reach its latest 8-month high against the US dollar yesterday, while the Pound on the other hand was depressed after the UK inflation data was published yesterday.
Market focus today (Thursday) will be on Australian employment data in the Asian session, UK economic growth data in the European session and US retail sales data in the New York session.
The Aussie dollar showed early gains after a report was published with a positive job gain in July of 50,200 versus the forecast of 20,200.
However, the unemployment rate recorded a poor figure with an increase to 4.2% compared to the forecast to remain at 4.1%.
