Australia CPI Report and Kospi Crash Dominate Asia Markets

If you're watching Asia-Pacific markets today, there are two things you really can't ignore. First up is Australia's CPI report for June, which is being treated as a make-or-break data point for the Reserve Bank of Australia's next interest rate decision. RBA Governor Bullock herself admitted she wasn't sure which way the upcoming meeting would go — which tells you just how much this single inflation number matters.

Here's what economists are expecting: headline inflation to hold steady at 4.0% year-over-year, while the trimmed mean — basically the RBA's preferred "cut out the noise" measure of inflation — is forecast to tick up slightly to 3.7% from 3.6%. Quarterly figures are also on the docket, so there's a lot of data to digest before Australian traders have had their second coffee.

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On a lighter note, it was actually a spectacular morning for Oceania on the track at the Commonwealth Games. Australian sprinter Lachlan Kennedy ran a blazing 9.85 seconds in the 100m — setting a record in his category despite racing through heavy rain — and took silver behind Cameroon's Robert Eseme. New Zealand's Zoe Hobbs was even better, claiming gold in the women's sprint while also setting an Oceanic record. Not a bad way to kick off the day.

Back to the less cheerful stuff: South Korean markets are also drawing serious attention after the Kospi index cratered 10.8% in the previous session. That kind of single-day drop is genuinely alarming, and investors across the region will be watching closely to see whether there's any stabilization or if the selloff continues to ripple outward.

Outside of those two headline stories, the economic calendar is pretty thin, meaning market moves will likely be driven by the Australian inflation surprise — or lack thereof — and whatever happens next in Seoul. Continue reading at Forexlive.