The dollar demonstrated strength on Monday as the market geared up for a busy week filled with significant economic releases that will offer insights into the global interest rate landscape.

The spotlight is on a pivotal U.S. inflation reading, with the core personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred gauge of inflation, scheduled for Thursday. Projections suggest a 0.4% monthly increase.

This week’s data calendar is further populated with inflation figures from the euro zone, Japan, and Australia, in addition to a rate decision from the Reserve Bank of New Zealand (RBNZ) and PMI readings in China.

In anticipation of these releases, the dollar made gains across the board, resulting in a 0.16% dip in the Australian dollar to $0.6553, while the New Zealand dollar experienced a 0.5% decline to $0.6167, Reuters reported.

Despite the New Zealand dollar’s 1.2% ascent last week, propelled by a weakened dollar and the potential for an RBNZ rate hike on Wednesday, most economists anticipate the central bank to maintain steady interest rates.

Written by B.C. Begley