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 is nearly intact after RBA
On Tuesday, the Australian dollar was nearly intact after the Reserve Bank of Australia made up its mind to leave its overnight rate on hold at 1.5%. Additionally, the Chinese Yuan rallied because an official of the People’s Bank of China told that the Yuan’s internationalization is market-driven.
As a matter of fact, the AUD/USD stood still showing 0.7211. As for the currency pair NZD/USD, it managed to add 0.1% being worth 0.6652. Australia’s key bank told that it actually expected a gradual pickup in inflation. Moreover, the RBA is assured that the country’s GDP will ascend at about 3.5% over the next few years.
Besides this, the currency pair USD/CNY slid by 0.1% coming up with a reading of 6.9239 because during the China International Import Expo Huo Yingli, director general of the Monetary Policy Department II of the People's Bank of China told that the national currency’s internationalization happens to be market-driven.
He told that the Yuan’s internationalization turns out to be a natural thing powered by the market. He added that its basic motivation is built around real demand from investment and trade.
The Yuan reference rate was set at 6.9075 versus yesterday’s reading of 6.8976 by the People's Bank of China.
Estimating the greenback’s actual purchasing power against its key rivals the USD index surged by up to 0.1% ending up with 96.19 because traders waited for the American midterm elections due later in the day.
As some analysts pointed out, financial markets are actively pricing in the likelihood of the Republicans’ win - even in the House. It’s generally believed that a Republican victory in both chambers will most probably back the evergreen buck.
In addition to this, the currency pair USD/JPY headed north by 0.1% reaching 113.34.
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.
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
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.