[cppene]

US and Chinese officials meet today and tomorrow for the first high-level talks of the Obama administration, and the market will be on high alert for any commentary regarding the USD’s status as a reserve currency. It is also a week where the US Treasury is set to sell a record US$115bn of debt (US$42bn in two-year notes on Tue, US$39bn in five-year Treasuries Wed and US$28bn in seven-year debt on Thu) and today there is a US$6bn reopening of a 20-year TIPS issue). Furthermore, there are a slew of US corporate earning reports over the coming days which are set to dictate sentiment and in turn USD direction. While in addition to these factors, there also a number of US macro data scheduled for the week ahead, starting with June New Home Sales this morning (cons: 352k, 2.9%) and culminating in annualised GDP on Fri.