Market Analysis

AUD/USD falls below 0.70 as China’s economic slowdown and renewed risk aversion challenge the support provided by Australia’s high interest rates.

GBP/USD holds near a two-month high as UK fiscal concerns ease and softer US inflation weighs on the dollar, but weak underlying growth leaves the sterling rally exposed.

USD/JPY remains near 162 as softer US inflation weakens July Fed rate-hike expectations, while intervention risk limits further yen losses.

EUR/USD has moved higher after an unexpectedly soft U.S. CPI report reduced expectations for a July Federal Reserve rate hike. The euro is benefiting from weaker dollar yields, but lower eurozone inflation and renewed energy-price pressure leave the ECB outlook uncertain.

AUD/USD is finding limited support ahead of the June U.S. CPI report as traders reassess the Federal Reserve’s rate outlook. The RBA’s 4.35% cash rate supports the Aussie, but weak consumer confidence, softer Australian employment conditions, and renewed oil-price risks are limiting the recovery.

GBP/USD is holding near 1.34 as renewed Gulf conflict and rising oil prices strengthen the dollar while increasing UK inflation risks. BoE rate-hike signals support sterling, but weak household finances and fiscal constraints limit the pound’s upside.

NZD/USD has strengthened after the Reserve Bank of New Zealand raised the OCR to 2.50% and signalled that further hikes are likely. However, delayed economic recovery, weak domestic demand, and lingering U.S. inflation risks may limit the kiwi’s upside.

EUR/JPY remains elevated as the yen stays close to multi-decade lows and the euro remains stable, but softer eurozone inflation, possible ECB patience, and Japan’s intervention risk are making further upside harder to chase.

GBP/USD has recovered after weak U.S. jobs data reduced Fed hike expectations and pushed the dollar lower. However, softer UK activity signals and a cautious Bank of England outlook mean sterling’s rebound still needs confirmation.