From August 24 to 28, a series of closely watched economic indicators will be released, mainly in Japan and the United States. On the 26th, the US July core PCE price index is expected to rise 0.2 percent month-on-month, a slight pickup from the previous reading. If the view spreads that the pace of disinflation remains slow, the Federal Reserve's tightening policy stance will come into focus, making the dollar harder to sell. On the 28th, the August Tokyo core CPI, which will influence expectations for an additional rate hike by the Bank of Japan, will be released. The index excluding fresh food is forecast to rise 1.7 percent year-on-year, and if growth around 2 percent is maintained, it is likely to become a yen-buying factor. In Australia, July CPI will be released on the 26th and is expected to slow sharply to around 3.5 percent year-on-year. If it comes in below expectations, expectations for further rate hikes could recede, potentially leading to Australian dollar selling.
Australia's July CPI expected to slow sharply, reducing rate hike expectations and potentially weakening AUD.
US core PCE expected to rise, possibly slowing disinflation and supporting Fed tightening, making USD stronger; Tokyo CPI may influence BOJ rate hike expectations, potentially strengthening JPY.
