European FX Open - Initial claims tipped to slow to 240k

AUD/USD starts the day on the relative front foot, jut south of the day's 0.6566 highs.

Latest moves coincide with comments from the RBA governor Bullock, stating the Bank is 'vigilant' over upside risks to inflation and it will not hesitate to raise interest rates further if needed.

In truth, not a huge market response and that could be due to the fact that we are just a couple of days since the RBA's last monetary policy meet where forecasts for inflation and economic growth were both lifted for the period ahead, while the OIS markets continue to price out the chances of any more tightening this cycle.

USD/YEN opens 'just' the 100 points or so lower (in contrast to recent 300 points overnight moves) even as the BOJ's summary of opinions from the July 31 board meeting showed that authorities believed monetary policy would remain accommodative even as they conducted a small interest rate hike.

A quiet session in store, at least events wise.

We get just Norway average monthly earnings for Q2 this morning and in the second half initial claims lead. The latter is forecast at 240k vs 249k and the report should garner more interest than usual given the lightness of the calendar, but also in the wake of last week's misses in the July payrolls report.

Fed's Barkin is a scheduled speaker tonight.

Elsewhere, US stock futures are all about flat at the time of writing, with little market response to JPM's view the bank now sees a 35% chance that the US economy tips into a recession by year-end of this year, up from 25% at the beginning of July. JPM's CEO also said he's sceptical that inflation will return to the Fed’s 2% target.

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