The dollar was on the front foot on Thursday after minutes from...

The dollar was on the front foot on Thursday after minutes from the Federal Reserve's July meeting pointed to U.S. interest rates staying higher for longer to bring down inflation.

The greenback gained most against the Antipodeans, especially the Aussie, which was dragged down as weaker-than-expected wage growth weighed on Australia's interest rate outlook.

The Australian dollar AUD=D3 fell 1.2% overnight and on Thursday hovered at $0.6930, just above Wednesday's one-week low of $0.6912 and the 50-day moving average at $0.6923.

Australian labour market data is due at 0130 GMT. The New Zealand dollar NZD=D3 also fell, losing nearly 1% to unwind an initial jump after the central bank hiked interest rates and steepened its projected rate-hike track. The greenback rose against the yen and sterling and was steady on the euro.

"The bigger picture for the dollar is that it's in a strong uptrend," said Matt Simpson, a senior analyst at brokerage City Index in Brisbane, adding it has now paused a weeks-long pullback

"In some ways, bulls are looking to step back in and I think the Fed minutes gave them a reason to do so."

The dollar rose 0.6% on the yen JPY=EBS overnight and held at 134.90 yen on Thursday. The euro EUR=EBS bought $1.0184. The U.S. dollar index =USD was steady at 106.570.

Federal Reserve officials saw "little evidence" late last month that U.S. inflation pressures were easing, the minutes showed. The minutes flagged an eventual slowdown in the pace of hikes, but not a switch to cuts in 2023 that traders until recently had priced in to interest-rate futures.

"Once a sufficiently restrictive level has been reached, they are going to stick to that level for some time," Rabobank strategist Philip Marey said in a note to clients.

"This clearly stands in contrast to the early Fed pivot that the markets have been pricing in."

Traders see about a 36% chance of a third consecutive 75 basis point Federal Reserve rate hike in September, and expect rates to hit a peak around 3.7% by March, and to hover around there until later in 2023. FEDWATCH

Sterling GBP=D3 also slid overnight after double-digit inflation focused investors' concerns on recession risk.

Britain's consumer price inflation rose to 10.1% in July, its highest since February 1982, official figures showed and after a brief blip higher sterling fell 0.4% to $1.2050.

It also dropped below its 200-day moving average against the euro.

"Do we get weaker sterling now, ahead of the inevitable recession? Or will sterling hold around here until rates peak and the economic disaster can dominate," asked Societe Generale strategist Kit Juckes in a note.

"I am confident that we will make a new cycle low this year," he said.

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	Currency bid prices at 0032 GMT 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	   EUR=EBS	$1.0184		$1.0178	 +0.06%		 +0.00%	  +1.0185	 +1.0173 
 Dollar/Yen		JPY=EBS	134.8200	   134.9950	-0.06%		 +0.00%	  +135.1650   +134.9150 
 Euro/Yen		 																			 
 Dollar/Swiss	  CHF=EBS	0.9505		 0.9519	  -0.12%		 +0.00%	  +0.9517	 +0.9508 
 Sterling/Dollar   GBP=D3	 1.2052		 1.2050	  +0.00%		 +0.00%	  +1.2054	 +1.2043 
 Dollar/Canadian   CAD=D3	 1.2920		 1.2915	  +0.00%		 +0.00%	  +1.2920	 +1.2914 
 Aussie/Dollar	 AUD=D3	 0.6937		 0.6937	  -0.02%		 +0.00%	  +0.6939	 +0.6929 
 NZ				NZD=D3	 0.6283		 0.6281	  +0.02%		 +0.00%	  +0.6284	 +0.6275 
 Dollar/Dollar																				   

All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX

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World FX rates	https://tmsnrt.rs/2RBWI5E 

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