The United States will release the advance GDP growth rate for the previous quarter on July 30, at 15:30 MT time.
Australian dollar heads south
On Tuesday, the US dollar stabilized because the market's focus shifted to US trade policy. It’s because market participants told that US attacks on Syria would not evolve into a wider conflict in the Middle East.
The US dollar index, indicating the US dollar’s strength against a bunch of six major currencies, was nearly intact having dived 0.4% on Monday.
Against the Japanese yen, the evergreen buck declined a bit because traders are preparing for a meeting between US President Donald Trump and Japanese Prime Minister Shinzo Abe on Tuesday and Wednesday.
Tokyo seeks to avoid clashes in the talks on a bilateral free trade agreement aimed not only at market access, but also at further changes in monetary and monetary policies.
The Australian dollar inched down after the publication of the minutes of the April meeting of the Reserve Bank of Australia. The minutes dropped a hint at increased uncertainty.
The currency pair AUD/USD dived 0.15% being worth 0.7769.
The protocol states that in the current conditions, the participants agreed that it’s more likely that the next step to have the interest rate lifted will be sooner rather than later. It’s the first case in this cycle, when protocols included such an observation.
The commentary around the labor market of inflation seems to be a bit more restrained than in the previous protocols. The protocol added that there still exist free opportunities in the labor market, inadequate employment at high levels, and progress in unemployment and inflation is likely to be only gradual. Inflation will remain low for some time, considering retail competition and slow wage growth.
Additionally, the protocols noted that the strengthening of the Australian dollar will slow inflation as well as the expected acceleration in the economy.
Additionally, it has become known that the growth of China's economy remains stable in the first quarter of 2018 amid strong retail sales.
The US unemployment claims are announced on Thursday at 15:30 MT time.
The Australian Monetary Policy Meeting Minutes are announced on Tuesday at 04:30 MT time.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…