Monday starts slow with nothing significant in terms of scheduled economic events for the FX market. On Tuesday the Reserve Bank of Australia will publish its monetary policy announcement and the U.S. will release the ADP weekly employment change and the existing home sales figures. Wednesday will bring the U.S. inflation prints and on Thursday the U.K. will release its GDP m/m and the prelim GDP q/q. On the same day, the U.S. will publish the core PPI m/m; the PPI m/m and the unemployment claims. Finally on Friday the retail sales m/m; prelim UoM consumer sentiment and the prelim UoM inflation expectations will be released in the U.S. At this week's meeting, the RBA is expected to leave its monetary policy unchanged at 4.35%. Recent inflation data in Australia came in below expectations on both a headline and trimmed mean basis, supporting the case for keeping rates on hold and allowing more time for the effects of previous tightening to work through the economy. However, despite the larger-than-expected slowdown in inflation, underlying price pressures remain elevated. The RBA is likely to maintain a hawkish tone as it assesses domestic demand and the potential impact of higher energy costs. Some analysts expect a 25 bps rate hike at the September meeting. Until then, the Bank will have additional data to assess the strength of economic activity and whether higher energy prices are beginning to pass through to broader consumer prices. In the U.S., the consensus for existing home sales is 4.05M, compared with the prior 4.09M. However, Wells Fargo analysts expect a 2.2% decline in July as the housing market continues to face affordability pressures.Average mortgage rates reached 6.5% in June and have moved higher since, while home prices remain elevated, particularly in the Northeast and Midwest. Pending home sales also declined in June, while mortgage purchase applications weakened sharply in July, highlighting the continued challenges facing buyers.Longer-term interest rates, including mortgage rates, are expected to remain elevated in the near term, according to Wells Fargo, limiting the potential for a meaningful recovery in housing demand. The consensus for core CPI m/m is 0.2%, compared with the prior 0.0%. CPI m/m is expected at 0.1% versus -0.4% previously, while core CPI y/y is forecast to decline from 2.6% to 2.5%. Headline CPI y/y is also expected to ease from 3.5% to 3.4%. Overall, U.S. inflation is expected to moderate, helped by slightly lower gasoline prices, while food inflation has remained under control, despite pressure from higher energy costs. On an annual basis, headline CPI is expected to ease to 3.4%. Price pressures appear to be concentrated in a limited number of categories rather than broadening across the economy, although inflation is still expected to make only gradual progress toward the Fed's 2% target. Traders will monitor the data closely, but with another CPI report due before the September meeting, the immediate market reaction could be limited. In the U.K., the consensus for GDP m/m is -0.1%, compared with the prior 0.1%, while preliminary GDP q/q is expected at 0.4% vs. 0.6% previously. The strong Q2 growth figures appear to have been supported largely by momentum carried over from late Q1. Economic activity has since moderated, with monthly GDP showing weaker growth in April and May, a trend that is expected to continue into June. ING analysts point out that survey-based indicators have also painted a weaker picture than the headline GDP figures suggest, while seasonal adjustment may have contributed to some of the reported strength earlier in the year. In the U.S., the consensus for core retail sales m/m is 0.2%, compared with the prior -0.2%, while retail sales m/m is expected at 0.1% vs. 0.2% previously. U.S. retail sales will be in focus as markets assess the strength of consumer spending. Auto sales were broadly unchanged, while lower gasoline prices are expected to weigh on sales at service stations. Other retail categories are likely to post modest gains, with spending potentially receiving a boost early in the month from the U.S. 250th anniversary celebrations and FIFA World Cup-related activity, particularly at grocery stores and restaurants. This article was written by Gina Constantin at investinglive.com.