FX Watch: USD/JPY and AUD/USD’s Setups if U.S. CPI Encourages Aggressive Fed Rate Cuts

Will U.S. dollar bears make a comeback as Uncle Sam rolls out its latest inflation updates?

Our Event Guide for the U.S. CPI report points to modest consumer price gains in December, a result that would support expectations for gradual Fed rate cuts.

But what if this week’s numbers come in softer and spark more aggressive rate cut hopes instead? In that scenario, setups like USD/JPY and AUD/USD could start looking especially interesting.