• EURUSD stays above key barrier of 1.0665 ahead of US CPIs

• Hotter-than-expected UK inflation could push GBPUSD above 1.2310

• AUDUSD awaits Australia’s jobs report and Chinese data

US CPI data -> EUR/USD

The US CPI data comes out on Tuesday and expectations are for the headline rate to have declined to 3.3% y/y from 3.7%, while the core rate is expected to have remained close to September’s 4.1%. That said, considering that the PMIs for October suggested softer price pressures, the risks surrounding the core rate may be tilted to the downside as well.

EURUSD weakened somewhat last week, but it remained above the key zone of 1.0665, above which the pair broke on November 3 after the disappointing NFPs. Slowing US inflation could result in another leg north in this pair and perhaps allow a break above the 200-day EMA and the upward sloping line drawn from the low of January 6.

UK CPI data -> GBP/USD

On Wednesday, the UK releases its own inflation numbers. The forecasts point to a slowdown here as well, but with the UK PMIs suggesting that prices charged by companies accelerated to a three-month high in October, the risks may be tilted to the upside.

This could help pound/dollar move higher, especially if the US CPI figures the previous day come in softer than expected. Cable could return above the 1.2310 zone and perhaps challenge its 200-day EMA. A break higher could see scope for extensions towards the 1.2600 zone.

Australia’s jobs report  -> AUD/USD

The aussie has been under pressure last week following the RBA’s dovish hike, as well as data and developments adding to concerns about China’s economic outlook. Now traders may pay close attention to Thursday’s employment report for October.

A report pointing to a still-tight labor market could help aussie/dollar rebound, perhaps taking it back above the 0.6400 zone. However, any recovery could be limited and short-lived if China’s data the previous day, that is on Wednesday, add to the gloomy picture of the world’s second-largest economy.