Headline inflation, in both the US and Germany, remained contained in their respective July readings. US headline inflation fell to 3.4%, while Germany’s CPI was steady at 2.8%. This was a relief for markets, as energy prices remain at elevated levels and any spike in inflation, would ring warning bells for Central Bankers. The EUR remained steady, trading 1.1520, while the GBP traded just below 1.3500.
The steady reserve allowed commodity currencies to hold ground, with the AUD trading just above 0.7050, while the NZD trades around 0.5850. The RBNZ releases an inflation report today, so markets will be looking for that to be in line with the reading from Europe and the USA.
