Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
Aussie and Kiwi decrease vs. greenback in late trade
On Thursday, the Australian and New Zealand dollars dived against their American counterpart, pulling back from peaks, reached earlier when the Fed announced a highly-anticipated rate lift.
The currency pair AUD/USD dived 0.21%, trading at 0.7694, off Wednesday’s two-and-a-half week peak of 0.7722.
On Wednesday, at the end of its two-day policy gathering, the Fed lifted interest rates by 25 basis points to 1.00% from 0.75%, exactly as expected.
The US dollar dived broadly following the decision, as the major bank’s stance was considered to be less hawkish than expected, given projections of three rate lifts this year and not four as some analysts had hoped for.
The currency pair NZD/USD dived 0.55%, trading at 0.7008, having reached a more than one-week high of 0.7050 during last session.
Earlier on Thursday, Statistics New Zealand posted that the country’s GDP added 0.4% during the fourth quarter of last year, thus confounding expectations for a surge of 0.7%.
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.
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.