[MARKET ANALYSIS] DXY trades rangebound after softening yesterday amid trade tensions with Canada, while China denounced US sanctions on Iran and trading partners

DXY: Flat Trades little changed overnight after mildly weakening yesterday amid lower oil prices and yields, as well as trade tensions after Canada announced dollar-for-dollar retaliation to US tariffs, and with the Trump admin said to be discussing additional trade penalties against Canada, while China also denounced 'illegal' US sanctions on Iran and trading partners, as well as vowed to take all necessary measures to safeguard its interests. Nonetheless, price action is quiet overnight with little reaction seen following comments from Fed's Barkin that the July rate decision was a close call and that officials will have another full set of data before the September meeting, while participants look ahead to data including revised GDP and the Core PCE. EUR/USD: Flat Trades rangebound after it edged mild gains yesterday, with price action contained within a thin range, with the single currency failing to benefit from a source report that ECB policymakers are ready to raise rates in September to stem side effects of the Iran war. GBP/USD: Flat Lacks direction following its recent choppy performance amid the absence of any pertinent catalysts for the UK. USD/JPY: -0.1% Mildly retreated and briefly dipped beneath the 159.00 handle after the hot Services PPI data from Japan. Antipodeans: AUD/USD +0.3% / NZD/USD -0.1% Mixed price action seen with mild outperformance in AUD/USD following firmer-than-expected monthly inflation data, which remained above the RBA's 2%-3% price target.