The US dollar retraced some of its Wednesday losses here during the Asian timezone today.

EUR, AUD, NZD, GBP, CAD, CHF and JPY – the USD gained right across the majors board. There was no news nor data to prompt the move. It was a very light day for news and data.

We did get, for the first time ever, an official monthly inflation report from Australia. The Australian Bureau of Statistics published the monthly CPI for June, July and August. September’s monthly CPI will be published alongside the established quarterly CPI report (for Q3) on October 26. Today’s data showed headline inflation (y/y) inched lower in August compared with July. The monthly CPI excluding food and energy (see bullets above), that is an indication to ‘core’ inflation, rose y/y from June to August.

On the central bank front the People’s Bank of China set the onshore yuan a little stronger compared to its Wednesday fix. The stronger reference rate (for CNY) comes after the Bank issued a warning statement on ‘one-way’ yuan moves on Wednesday afternoon, China time.

The rise for the USD index today is a retrace of its fall Wednesday:

dxy wrap 29 September 2022