US and UK CPIs Take Center Stage

US CPIs Under the Limelight Today, UK Inflation Numbers Follow Tomorrow

The US dollar traded mixed against the other major currencies on Monday and during the Asian session Tuesday. It gained against CHF, JPY, and AUD, in that order, while it underperformed versus CAD, EUR, GBP, and NZD.

AUD/USD — Technical Outlook

AUD/USD traded in a consolidative manner yesterday, staying between the support of 0.7340 and the resistance of 0.7375. However, overall, the pair continues to trade below the upside support line drawn from the low of August 20th, as well as below the longer-term downside resistance line taken from the high of May 10th. In our view, these technical signs keep the short-term outlook negative.

GBP/JPY — Technical Outlook

GBP/JPY traded higher yesterday, after it hit support at 151.90, and now looks to be headed towards the 152.65 barrier, marked by Friday’s high. Overall, the pair continues to trade above the upside support line drawn from the low of August 24th, and thus, we would consider the short-term picture to be positive.

As for the Rest of Today’s Events

The only other items on today’s agenda worth mentioning are the US NFIB small business optimism index for August, and Canada’s manufacturing sales for July. However, neither release has been proven a major market mover in the past.

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