AUD/USD is up 0.3% on the day to 0.6375 but is off its earlier highs near 0.6400. The aussie is the only notable mover so far, climbing after the stronger Australian CPI data here. That is seeing traders price in higher odds of a RBA rate hike next month, with it sitting at ~58% now. That being said, AUD/USD is still caught in a downwards channel at the moment so the overall picture has not changed:
AUD/USD daily chart
Buyers will need to break above 0.6400 and more preferably the 0.6500 mark to really put on a squeeze on sellers – one that could be rather painful considering the persistent negative sentiment in the pair for quite some time now.
Outside of the aussie, the dollar is steady and major currencies are not showing much appetite so far on the day. EUR/USD is flattish around 1.0596 and trapped in a 16 pips range with USD/JPY likewise at 149.83 and trapped in a 12 pips range. That sort of tells the story that traders are looking rather weary ahead of European trading.
In other markets, equities are a little more sluggish with S&P 500 futures down 0.3% but 10-year Treasury yields are also down 1.3 bps to 4.827% so there is a bit of a mixed mood. That will keep broader sentiment in a bit of a bind in the session ahead.
As for the key risk events today, be mindful of the 5-year Treasury auction coming up later before getting to remarks by Fed chair Powell at the very end of the day.