Inflation-Linked Data Looms for Dollar Traders

The US Dollar was relatively listless as investors await next week’s release of US inflation-linked data. Analysts are hoping that the figures could be a catalyst for the greenback, which has been trading in a tight range for the past several days. Analysts remained concerned that the latest decline in oil prices has clouded the forecasts for inflation. In the week ahead, potential market moving reports include durable goods orders, crude oil inventories, pending home sales, Q1 GDP (revised) and May’s personal consumption expenditures.

As reported at 11:47 am (JST) in Tokyo, the USD/JPY was trading at 111.321 Yen, up 0.03%; the pair earlier touched a session high at 111.436 Yen while the low was at 111.221 Yen. The AUD/USD is higher at $0.7544, a gain of 0.03%. 

Commodity-linked currencies, like the Kiwi Dollar, had earlier made strong gains after oil prices rebounded from multi-month lows. The Kiwi was one of the FX market’s key movers after the Reserve Bank of New Zealand announced no change to monetary policy but kept an upbeat outlook for the country’s economy and growth. Analysts say that the RBNZ continues to be accepting of the Kiwi’s recent rise. The NZD/USD was trading at $0.7259, a loss of 0.108%, moving well off the earlier peak of $0.72685.

Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.