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.
Australian dollar inches down
On Friday, the Australian dollar headed south versus its American counterpart in Asia due to the fact that the Reserve Bank of Australia had its GDP surge estimate for the year through June slashed.
In its quarterly statement on Monetary Policy, Australia’s key financial institution had the GDP surge estimate reduced from 3.25% to 2.5%.
For the year to June 2020, Australia’s major bank diminished its estimate from 3.25% to 2.75%. What’s more, it expects 2021 surge at about 2.75%. As for unemployment, it’s anticipated to stay at 5% this year, intact from its current reading.
As for inflation, the headline CPI estimate was diminished to about 1.25%.
The currency pair AUD/USD headed south by 0.3% concluding the trading session at 0.7077 after the news. This week the Australian dollar has lost about 2.4% of its market value.
In addition to this, the evergreen buck demonstrated a two-week maximum, underpinned by safe-haven demand, right after this week US leader told that he didn’t plan to meet with his Chinese rival Xi Jinping before a March 1 deadline to make a trade deal.
Larry Kudlow, White House economic advisor told that there’s rather a sizable distance to go before America and China could come to a compromise. At the same time, this week Treasury Secretary Steven Mnuchin stressed that a wide array of issues still needs to be worked out.
The United States and China have until the beginning of March to strike a long-awaited trade deal before extra levies on China’s imports kick in.
Evaluating the purchasing potential of the US currency versus a number of its main peers the USD index was worth 96.345, heading north by up to 0.1%.
Besides this, the currency pair USD/JPY slumped by nearly 0.08% ending up with a reading of 109.70.
Have a look at the key financial instruments on Monday, February 28. Geopolitics is currently on all news frontlines. Western nations escalated sanctions on Russia for the invasion of Ukraine.
Last week was super intense! Geopolitical turbulence made the Russian ruble the most volatile currency. Gold rose and fell by more than 8000 points each time.
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.
Every week we expect many interesting events that can shake the market.