US CPI and RBA Decision to Dominate Forex Markets This Week

The upcoming week in foreign exchange markets will be dominated by two key events: the release of the U.S. July Consumer Price Index (CPI) on August 12 and the Reserve Bank of Australia's (RBA) monetary policy decision on August 11.

According to currency analyst Tsutomu Nakamura, if the CPI surpasses market forecasts, 'expectations for additional rate hikes will strengthen, potentially leading to a rise in long-term U.S. interest rates and a stronger dollar.'

This could result in a capped upside for the Australian and New Zealand dollars against the U.S. dollar, while a rise in USD/JPY is expected to provide underlying support for yen crosses.