FX Update: The main dollar pairings have been trading in narrow ranges,
FX Update: The main dollar pairings have been trading in narrow ranges, of less than 15 pips for the most part, and less than 25 pips in the case of USD-JPY. AUD-USD drifted modestly lower following the release of the RBA minutes from the early July policy meeting, which affirmed the Board's dovish bias. The pair posted a 0.7032 low, down from a 13-day high at 0.7044 that was seen during the early part of the Sydney session today (which extended Aussie gains seen after yesterday's forecast beating production and retail sales data out of China). USD-CAD eked out a three-session high at 1.3059 before steadying at slightly low levels. EUR-USD traded in a narrow range centred on 1.1260, holding just above yesterday's low at 1.1253. Cable eked out a four-day low at 1.2507, which extended yesterday's low by 3 pips. USD-JPY posted a high at 108.09, which is 2 pips shy of the high seen yesterday. In equity markets, most of the main Asian indexes have posted moderate gains, though Chinese shares have come under pressure in late PM trading. U.S. Treasury Secretary Mnuchin made positive remarks about progress in trade talks, while markets are bracing for an incoming tide of Q2 corporate earnings results and a heft slate of U.S. data releases this week, which will collectively paint an updated picture of the impact that trade protectionism has been having. As for Fed easing expectations, Fed funds futures have fully priced in a 25 bp rate cut for July 31, and then some, with the August implied trading at 2.08%.