The Euro slipped after some data underscored market expectations for a smaller 25 basis point ECB hike this week, while the Aussie dollar jumped more than 1% against the greenback on Tuesday after the central bank's surprise rate hike.
This week also has some important data for the US market with some to be released including job offers, NFP data as well as the Federal Reserve meeting which ends on Wednesday.
The euro last traded at $1.0973, unchanged on the day, and returned below the symbolic $1.10 level after Tuesday's data showed euro zone banks intended to start slowing rate hikes and core inflation finally fell.
The preliminary reading of the consumer price index for April rose to 7.0% on an annual basis in line with economists' forecasts, following a rebound in energy prices. However, core inflation, slightly slowing to 5.6%, estimates that the figure will remain unchanged.
Investors' focus turned to the JOLTS data that will be released tonight. According to Samy Chaar, chief economist at Lombard Odier, analysts expect the Fed to raise rates by 25 basis points. Markets focus on JOLTS data for further indications.
On the other hand the Australian dollar jumped by 1.2% after the Reserve Bank of Australia (RBA) raised the cash rate to 3.85% and said further tightening may be needed to ensure inflation returns to target within a reasonable time frame. The New Zealand dollar followed the Australian currency up 0.55% to $0.6201.
