The Australian dollar is in the spotlight today as it gains after a stronger-than-expected inflation report here. That is prompting calls for a 25 bps rate hike by the RBA next month, with the rates market pricing in ~62% odds of that now. That being said, AUD/USD is still caught in a downwards channel for now and will need more from buyers to convince of a stronger rebound:
Besides that, the dollar continues to sit in a relatively decent spot. USD/JPY is still hovering just below the 150.00 mark while EUR/USD dipped below 1.0600 yesterday before sticking closer to the figure level at the moment. The retracement in Treasury yields on Monday isn't quite extending just yet and that is keeping the dollar steady so far.
In other markets, equities are staying hopeful with a decent showing yesterday. The S&P 500 in particular managed to push back above its 200-day moving average but US futures are pointing to a slower start for now - down 0.2%.
Looking to the session ahead, economic data will not be too much of a factor with the German Ifo business climate index being the only releases of note in Europe. The Bank of Canada will feature later in North America trading but markets will be watching for remarks from Fed chair Powell towards the end of the day before focusing on the ECB tomorrow.
0800 GMT - Eurozone September M3 money supply
0800 GMT - Germany October Ifo business climate index
0800 GMT - Switzerland October Credit Suisse investor sentiment
1100 GMT - US MBA mortgage applications w.e. 20 October
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.