US Initial jobless claims will be announced on Thursday at 15:30 MT time.
All eyes on AUD
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.
The US dollar has broken through the key resistance, it failed to cross since March so far. Riskier assets are dipping. Let’s discuss it in detail.
Services and Manufacturing PMIs are out on Wednesday at 11:30 MT time.
China’s Manufacturing PMI will be out on Wednesday at 04:00 MT time!
China's industrial rebound, progress in US fiscal stimulus and other important news in this article.
The market sentiment is mixed as investors weigh US stimulus package against the rising infections and worse-than-expected US unemployment claims. Jump in for fresh analysis of EUR/USD, USD/JPY, S&P 500 and gold!