Asian session: The Australian dollar strengthened

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Australia's dollar strengthened to the highest in almost two weeks after a government report showed annual inflation accelerated to the fastest pace in four years. The statistics bureau said the annual trimmed mean inflation rate increased to 2.9 percent, the highest level since the three months ended March 2010. The central bank targets inflation of between 2 percent and 3 percent on average.

The Aussie advanced at least 0.2 percent versus all its 16 major counterparts as traders pared bets the Reserve Bank of Australia will cut interest rates this year. Traders see a 17 percent chance the RBA will cut its 2.5 percent key rate by December, down from a 36 percent probability a week ago, according to interest-rate swaps data compiled by Bloomberg.

The euro fell versus most of its major peers before a report that economists said will show a gauge of consumer sentiment stayed negative in July.

EUR / USD: during the Asian session, the pair traded in the range of $ 1.3470-80

GBP / USD: during the Asian session, the pair rose to $ 1.7075

USD / JPY: on Asian session the pair fell to Y101.40

BOE MPC Minutes released at 0830GMT provide the morning focus. Traders expect a unanimous vote to keep rates unchanged, the main interest will be if there is any hawkish split, though recent weak earnings data may offset the strong UK data and dampen rate hike calls.