FX markets and central banks Overview - USD/CAD - AUD/USD

The article is a weekly forex and rates overview centered on USDCAD and broader dollar dynamics. Canada’s July CPI accelerated to 3.0% y/y, giving the Canadian dollar a short-term lift and pressuring USD/CAD lower, but the Bank of Canada is still expected to stay cautious as core inflation moderates. In Australia, weaker employment data and a rise in unemployment to 4.5% weighed on the Aussie initially, though AUD later recovered as the U.S. dollar softened. The piece also notes hawkish July FOMC minutes, but markets increasingly focused on cooler U.S. data and pushed FedWatch odds for a September rate cut back into the 60%–70% range. Overall, major currencies rose against the dollar during Aug. 17–21, led by NZD/USD and AUD/USD, reflecting a broader repricing of Fed expectations and a weaker greenback.