The Us Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on June 3, 15:30 MT time (GMT+3).
All eyes on AUD
Information is not investment advice
The RBA will make a rate statement on August 4 at 7:30 MT time.
Instruments to trade: AUD/USD, AUD/NZD, AUD/CHF, EUR/AUD
The Reserve Bank of Australia uses the rate statement as the primary tool to communicate with investors and give them hints on the future monetary policy. This time it will have a huge impact as the central bank will assess the current state of the Australian economy amid increasing number of virus cases. The country is suffering from the fresh resurgence of new infections, that’s why the government is forced to impose stricter restrictions. Also, officials will unveil guidelines on the economic recovery. This information will be important as Australia goes through the most severe economic contraction since the 1930s. It’s widely expected that the central bank will leave the rate unchanged at its record low at 0.25%, but it may scale up asset purchases to increase money flow to support the economy. In addition, pay attention on the overall tone of the RBA’s statement.
- If the RBA is optimistic and increases asset purchases, the AUD will surge.
- If the RBA is pessimistic and decreases asset purchases, the AUD will decrease.
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.