Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
Australian dollar drops in Asia on RBA remarks
On Friday, the Australian dollar sank in Asia after the major bank indirectly hinted that a record minimum cash rate of 1.5% wouldn’t be changed and markets shifted attention to American nonfarm payrolls as well as major surveys in France this weekend.
The currency pair AUD/USD edged down 0.19%, hitting 0.7395, while EUR/USD reached 0.08%, being worth 1.0975.
As for USD/JPY, this pair added 0.11%, demonstrating 112.59. In a recent interview, BOJ Governor Haruhiko Kuroda told that aggressive monetary easing is actually working to raise prices.
Assessing the US dollar’s actual value versus its six main counterparts, the US dollar index, inched up 0.09%, being worth 98.70.
On Friday, the Reserve Bank of Australia issued its latest monetary policy statement with few surprises regarding economic surge expectations over the next two years, indirectly hinting that further interest rate drops were off the table. It’s because wage revenues are much weaker than expected, although house prices in some markets are still a concern.
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.
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.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.