Dollar sellers pause ahead of US inflation data
In short
Dollar sellers paused before US inflation data. The Australian dollar climbed nearly 1% through Monday to $0.6921, and the New Zealand dollar rose to $0.5624 early Tuesday.
What the reporting says
Dollar sellers paused ahead of US inflation data, while the Australian dollar rose nearly 1% to $0.6921 and the New Zealand dollar climbed to $0.5624 early Tuesday in Asia trade. The move followed Monday’s gains in both currencies. The setup reflects traders waiting for the inflation release before making further bets on the dollar and risk-sensitive currencies.
Why it matters
The foreign-exchange market paused for US inflation data, with the Australian dollar and New Zealand dollar both stronger in early Asia trade. The Australian dollar had gained nearly 1% to $0.6921, while the New Zealand dollar reached $0.5624. The move suggests traders were holding back from further dollar selling until the inflation figures provide a fresh read on the policy outlook.