[MARKET ANALYSIS] FX markets are flat ahead of key data releases this week, while participants await a widely-expected RBA rate hike

DXY: Flat Trades little changed overnight after ultimately gaining yesterday in choppy trade alongside higher US yields and a slew of conflicting geopolitical headlines, while there were also some Fed comments, including from Cook, who expects to see continued inflation pressure in the coming months from AI and the Middle East conflict, while she also noted signs of broadening pressure in inflation data. EUR/USD: Flat Remains contained after marginally softening on Monday, with some headwinds amid comments from ECB's Lagarde that she views a measured response as appropriate to keep inflation in check and that they remain in the middle path for monetary policy that was laid out earlier this year, while more ECB speakers are scheduled today. GBP/USD: Flat Lacks direction following its recent choppy mood amid several BoE comments and reports that UK PM Burnham is expected to edge Labour closer to rejoining the EU and will signal the end of the pensions triple lock in his conference speech today. USD/JPY: Flat Conforms to the humdrum mood across the FX space amid a lack of tier-1 data from Japan and despite jawboning from Japanese Finance Minister Katayama, who stated that they exchanged views on FX trends with US Treasury Secretary Bessent on Friday and agreed to bolster cooperation, while she also stated that they believe the undervalued yen, in general, is problematic. Antipodeans: AUD/USD Flat / NZD/USD +0.2% Rebounded from an early decline but with AUD/USD constrained after weaker-than-expected Household Spending data and as participants await a widely-expected RBA rate hike today.