A quiet start to what could be a very busy week, as the Fed leads out the Swiss National Bank and the Bank of Japan, with their latest interest rate decisions. The Fed is expected to leave rates on pause, despite recent spikes in inflation, but the narrative will be watched very closely indeed. The RBA will release the minutes of the last rate decision, to leave rates on hold at 4.1%, in July. This week will be focused on speculation on monetary policy, inflation and growth. The ECB raised rates last week and attention will be paid to the latest inflation number, set to be released this week. The US Dollar was steady, with the EUR trading below 1.0700, while the GBP cannot seem to regain 1.2400.
The rise in Bond Yields in the US and Europe are indicating there could be more rate rises to come. The RBA minutes will likely confirm indecision at the last meeting, as inflationary pressures remain. The interest rate differentials are pushing the local currency lower, with the AUD floundering just above 0.6400, while the NZD looks to regain 0.5900. All eyes remain on Central Banks.