Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
AUD is All Excited about Job Data! Why?
What will happen?
Australia will release employment change and the unemployment rate on Thursday, at 02:30 MT time. The employment change shows the difference in the number of employed people during the previous month. The unemployment rate demonstrates the percentage of the total unemployed workforce looking for a job during the last month. Both indicators track situation in the Australian labour market.
Why is it important?
The Reserve Bank of Australia is currently monitoring the situation in the economy to make the next steps concerning monetary policy. For now, the regulator remains cautious as inflation is not moving within the 2-3% range. However, serious changes in the Australian labour market may push the RBA to consider tapering. Last time, the employment change rose by 64.8K (vs the forecast of 60K), and the unemployment rate fell to 4.2% (vs 4.5% expected).
As a result, the Australian dollar outperformed other currencies.
How to trade on the Australian Job Data?
Compare the actual figures with the forecasts in the economic calendar.
- If employment change is higher and the unemployment rate – lower than the forecast, the AUD will strengthen;
- In case of an alternative scenario, the AUD will weaken.
Instruments to trade: AUD/USD, AUD/JPY, AUD/NZD
Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.
The United States will publish the Inflation Rate and Core Inflation Rate, also known as US CPI and Core CPI, on August 10 at 15:30 GMT+3.
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.
Every week we expect many interesting events that can shake the market.