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 after RBA minutes
On Tuesday, the Australian dollar headed south in Asia after the publication of the minutes of the RBA’s April meeting.
Eventually, the currency pair AUD/USD hit 0.7148, slipping by approximately 0.3%.
Australia’s key financial institution actually expects inflation to stay muted for some time, although suggested that it’s still open to rates cut on the condition inflation remains low, while the jobless rate jumps.
Additionally, the RBA also stressed that the deceleration in GDP surge contradicts the improvement in the Australian labour market.
Aside from that, the USD index stood still, keeping to 96.570.
The evergreen buck was pressured earlier this week because American leader came up with his hard criticism of the major US bank once again over the weekend. The blamed the key US financial institution for decelerating growth and also diving stocks by its tightening monetary policy.
While not a key directional catalyst, the Empire State manufacturing index went up by 6.4% in April to an outcome of 10.10, as the New York Federal Reserve told on Monday. It beat forecasts for an outcome of 6.70.
As Charles Evans, Chicago Federal Reserve President told, he expected the Federal Reserve to remain on pause until the autumn of 2020.
Meanwhile, the core personal consumption expenditures price index, the Fed's preferred inflation gauge hit 1.8%.
As a matter of fact, the currency pair EUR/USD went down by 0.1% reaching 1.1302 because investors wait for further news on Brexit.
Furthermore, the currency pair USD/CNY managed to tack on by up to 0.04% ending up with a reading of 6.7061.
The currency pair USD/JPY declined by 0.1% being worth 111.92.
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.
Reserve Bank of New Zealand (RBNZ) will reveal Official Cash Rate and make a statement about monetary policy on October 6, 04:00 GMT+3.
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.