Asian session: The Australian dollar rebounded

02:00 China Leading Index June +0.7% +1.3%

03:00 Australia RBA's Governor Glenn Stevens Speech

04:30 Japan All Industry Activity Index, m/m May -4.3% +0.7% +0.6%

A gauge of the dollar was 0.1 percent from the highest in a month as an increase in short-term U.S. Treasury yields signaled mounting expectations the Federal Reserve will raise interest rates.

The correlation between dollar-yen and Treasury two-year yields rose to the highest since March, before data today that may show inflation held at the fastest pace since 2012. U.S. consumer prices climbed at an annual rate of 2.1 percent in June, matching May's figure that was the most since October 2012, according to a Bloomberg News survey of economists before today's Labor Department report. The inflation rate has increased from 1.1 percent in February.

Traders saw a 46 percent chance the Fed will raise the target rate for overnight bank lending by June, according to futures data compiled by Bloomberg as of yesterday. That's up from a 40 percent possibility on June 30.

The Australian dollar rebounded after RBA Governor Stevens didn't comment directly on the currency, monetary policy stance or the outlook for the domestic economy in prepared remarks at a luncheon today in Sydney. The currency tumbled 1 percent on July 3 when he said it was "overvalued" by most measures. Australia's statistics bureau may say tomorrow consumer prices climbed 3 percent in the second quarter from a year earlier, the biggest increase since December 2011, according to economists surveyed by Bloomberg.

Reserve Bank of New Zealand Governor Graeme Wheeler will raise borrowing costs for a fourth time this year, to 3.5 percent on July 24, according to all except one of 15 economists surveyed by Bloomberg. Policy makers will boost rates by 69 basis points during the next 12 months, according to a Credit Suisse Group AG index. That compares with a projected increase of as much as 135 basis points in March.

EUR / USD: during the Asian session, the pair traded in the range of $ 1.3520-30

GBP / USD: during the Asian session, the pair rose to $ 1.7080

USD / JPY: during the Asian session, the pair rose to Y101.50

UK public borrowing data due up at 0830GMT provides the domestic interest today, though overshadowed by US inflation data at 1230GMT.