US and Japan Inflation Data Tests Fed's Rate Hike Projections

This week's economic calendar is marked by inflation data releases in both the US and Japan. The US July Consumer Price Index (CPI) will be released on Wednesday, with an expected rise of 0.1% month-over-month and 3.4% year-over-year, according to the Cleveland Fed's Inflation Nowcasting model.

The same day, Japan's July PPI will be announced, following a rare joint US-Japan intervention to defend the yen, which hit 40-year lows in late July. The Bank of Japan has signaled its most explicit openness yet to an early rate hike, amid acute yen stress.

On Thursday, FedSpeak resumes with Cleveland Fed President Beth Hammack and Richmond Fed President Tom Barkin speaking. Meanwhile, the Reserve Bank of Australia meets on Tuesday, widely expected to hold its key interest rate at 4.35% after the June-quarter trimmed mean inflation rate cooled to 3.6%.