The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
AUD is in focus
Follow the Australian private capital expenditure report on August 27 at 4:30 MT time!
Instruments to trade: AUD/USD, AUD/NZD, AUD/CHF, EUR/AUD
It's a key indicator of economic health. Businesses are the first affected by market changes. They have to quickly adapt to the new market environment. Therefore, changes in their investment levels may be an early sign of future economic activity. They will have a direct impact on hiring, spending, and earnings. Australian private capital expenditure slumped by 1.6% in the three months to March. It was the fifth quarter of decrease in a row. Thus, there is an intrigue will the report be positive this time or not. Follow the release!
- If the Australian private capital expenditure is better than the forecast, the AUD will rise.
- Otherwise, the AUD will fall.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.