Dollar Flying Ahead of Inflation Data

The U.S. Dollar Index that tracks the greenback against a basket of other currencies edged up 0.10% to 108.18 by 12:24 AM ET (0424 GMT).

The USD/JPY pair edged up 0.16% to 137.09.

The AUD/USD pair gained 0.25% to 0.6773, and the NZD/USD pair edged down 0.11% to 0.6129. The Reserve Bank of New Zealand (RBNZ) raised the interest rates by 50 basis points to 2.5% earlier in the day.

There was no real change in tone, BNZ strategist Jason Wong informed Reuters on the RBNZ decision, counting that left U.S. CPI likely to drive the kiwi’s next move. Everyone is at the whim of the U.S. dollar.

USD pairs inching higher

The USD/CNY pair inched up 0.01% to 6.7258, while GBP/USD pair edged up 0.19% to 1.1908. Official data released earlier in the day showed that China’s exports in the first six months of 2022 grew 13.2% year on year. This added to markets’ confidence that the world’s second-largest country is seeing economic recovery as the COVID-19 curbs eased.

The EUR/USD inched up 0.03% to 1.0039. It was down nearly 12% this year. Moreover, it fell to a 20-year low on Tuesday as the war in Ukraine triggered an energy crisis that would hurt the economic outlook.

In the U.K., eight Conservatives are vying to succeed Johnson.

Investors now await U.S. Consumer Price Index (CPI) for more clues on the U.S. Federal Reserve’s monetary policy path, which is due later in the day. Analysts predicted the print would hit a 40-year high in June from a year earlier, the most significant jump since 1981.