Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
Aussie dives, Kiwi stands still in late trade
On Monday, the Australian dollar sank versus its American rival, while the New Zealand dollar was intact because market participants were still digesting the American government shutdown.
The currency pair AUD/USD slid 0.14% being worth 0.7987.
The US currency initially dropped reacting to Friday’s American government shutdown after Republicans and Democrats didn’t manage to agree on a last-minute deal to finance government operations.
On Sunday, Democratic and Republican leaders of the US Senate held negotiations, hoping to break the impasse.
The evergreen buck has been suppressed in recent trading sessions amid worries that the global economic revival is going to outperform American surge and help other key financial institutions, including the ECB to start unwinding loose monetary policy at a faster tempo.
Besides this, the currency pair NZD/USD stood still, demonstrating a reading of 0.7276.
Now traders follow the economic events with new vision as inflation in the US seems like decreasing. Let’s see what releases will influence the market due to that factor.
The week will have the biggest event in the US political process over the last two years. How will the elections affect the Forex market? We covered the most important news of this week in this report.
The Reserve Bank of Australia (RBA) will make a statement and release a Cash Rate on February 7, 05:30 GMT+2. It's among the primary tools the RBA uses to communicate with investors about monetary policy.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.