Market players were all eyes yesterday on the Fed’s Chair Yellen’s testimony in front of congress. After using an expanded balance sheet as a tool to help support the economy for the past years, pushing it to a $4.5 trillion portfolio, the Fed is now signaling it will likely start reducing it later in 2017.

However the Fed’s Chair was also quoted as saying that the balance sheet cutback and also any further rate increases would likely be gradual. Testimony continues today as well.

The US Dollar reacted negatively as the Fed’s neutral state may not be too far off and getting there may be very “gradual”.

Earlier in today’s session Consumer Inflation expectations for July in Australia rose significantly from a previous 3.6% to 4.4%. The Aussie’s reaction remained fairly muted as the RBA sticks to its accomadtive stance in order to maintain growth.

Yellen’s testimony later this afternoon will likely to gain attention, but until then looking at the economic docket, we have German CPI and US PPI in what looks like a realtively quiet day on the data front.