The U.S. dollar index was steady at around 94.00 in the Asian session trading some days ago (October 14). The greenback briefly collapsed after the release of the America’s inflation data last night. 

The publication of the FOMC meeting minutes then helped stabilize the situation, but failed to become a significant bullish catalyst. It can be seen from the changes in the market. 

When the news is written, price movements in major pairs are observed relatively calmly. The United States inflation data for September 2021 showed a higher rise than the market expectations. 

However, core inflation did not show the exceptional growth so far. Following the publication of the report, short-term US Treasury yields increased, but the longer-term Ones were corrected. 

The High Inflation is Maybe Just Temporaey

This phenomenon signals that the market still considers that the period of high inflation will only last temporarily. This prediction is unchangeable from the past times until now. 

Thus leaving the questions about whether the Fed will raise the interest rates faster than previously predicted. That possibllility is the things predicted by the analysts. 

The yield difference between the 2-year and 10-year U.S. Treasuries declined to its narrowest range in two weeks. After the release of the current data, the USD index retreated.

It is especially from its year-high and the USD fell in major pairs. Partly because the data did not show major developments beyond expectations, partly due to technical factors happened. 

The Meeting Members Have the Different Opinion

The Minutes from the FOMC meeting in September 2021 confirmed about the Fed's readiness to start tapering in mid-November. However, the meeting participants still differed.

It is especially on how much of a threat inflation would rise and when they would need to raise interest rates to respond. How is this possible amidst the situation like this?

In short, neither The United States inflation data nor the minutes of the FOMC meeting both delivered the new news that the market did not yet know. What are those? 

Both instead reinforced the uncertainty surrounding the Fed's projected rate hike. Tapering is now verified as it was said by Kathy Bostjancic, a chief U.S. financial economist at Oxford Economics, 

Will the Inflation Makes the Rate Is Higher?

The bigger question is that will these dynamics force them to be more aggressive and faster at raising interest rates? So, rising interest rates are now a big focus for the market.

Furthermore, that's where we're really witnessing the price movements along the yield curve. Elsewhere, another prediction is made, especially for the CPI data in various countries. 

Similar to Australia, the New Zealand Bureau of Statistics only rreleases the CPI data quarterly in quarter-by-quarter (q/q) and quarter per year (q/y) or annual inflation. 

The Cpi data that measures the inflation rate is always considered by the RBNZ as a consideration in determining interest rates. They are quite accurate.

China’s Growth Data will Make an Impact 

GDP states that the total value of goods and services a country produces over a given period of time. It is also considered a measure of economic growth typically announced quarterly. 

In China this data is released by the national bureau of statistics. The releases in the form of percentage changes compared to the same quarter in the previous year (quarter per year or q/y).

That is also compared the changes per quarter (quarter per quarter or q/ q). China's growth release will have an impact on the market because China's influence on the global economy is quite significant.

From mid-2013 to the third quarter of 2016 China's economic growth (q/y) continued to fall. That is due to the slowing investment in manufacturing and property sectors.