Forex Today: AUD hit by Aus CPI miss, RBA’s Lowe, UK GDP, Fed - Key

Forex today was quite eventful in terms of economic news and central bankers’ speeches, with the Aussie having suffered the most amid softer Australian CPI figures and RBA Governor Lowe’s jawboning, while the Kiwi traded with moderate gains on the back of upbeat NZ trade figures and RBNZ Assist Gov McDermott comments. The USD/JPY pair fluctuated between gains and losses amid risk-off trades and US political headlines.

Main topics in Asia

New Zealand Imports came in at $4.46B, above forecasts ($4.39B) in June

Australian Q2 CPI misses expectations, RBA trimmed mean in line

Australia's headline inflation figures came worse-than-expected, while RBA's trimmed mean inflation readings were in line with expectations.

US Republican plan to repeal and replace Obamacare fails – Reuters

The headlines crossing the wires via Reuters – US Senate Republican plan to repeal and replace Obamacare has failed to get votes needed for approval.

Copper clocks 26-month high, sees inverse head & shoulders breakout

Comex copper jumped to 26-month high of $2.8049 in Asia on the back of optimism over China and Europe. 

RBA’s Lowe: No need to move in lock step with central banks that are hiking

The Reserve Bank of Australia (RBA) Governor Phil Lowe is on the wires now, via Reuters, speaking on the topic of "The Labour Market and Monetary Policy" at the Anika Foundation Luncheon, in Sydney.

RBA’s Lowe: It would be better if the AUD was a bit lower

More comments flowing in from the RBA Governor Lowe are as under:

Key Focus ahead

Looking ahead, all eyes remain on the FOMC policy outcome, which will set the tone for the US dollar in the coming months. In the meantime, the UK Q2 prelim GDP report, US new home sales and EIA crude oil inventories data will be eyed for fresh trading impetus.

The preliminary figures for the second quarter UK GDP are expected to have accelerated to 0.3% q/q versus 0.2% seen last, while on annualized basis, the pace of expansion seems to have eased to 1.7% versus 2.0%.

GBP/USD in a wait-and-see mode ahead of UK Q2 prelim GDP

The bears take a breather in the Asian session, allowing the GBP/USD pair to extend the overnight sight trend, as investors now brace for the big risk events due later today.

EUR/USD - Market is bullish for the next quarter, focus on Fed minutes

The EUR/USD pair clocked a high of 1.1713 (highest since Aug 2015) on Tuesday before closing out almost on a flat note at 1.1645. 

FOMC meeting preview: a non-event? - Nomura

Analysts at Nomura's FOMC meeting preview where they do not expect any major policy changes or announcements in tomorrow’s FOMC statement.