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 tacks on
On Tuesday, the Australian dollar steeply ascended after Australia’s major financial institution held rates at a record minimum, dashing speculation it might ease policy in response to a below-par outcome of inflation.
The Australian dollar last surged by 0.7% hitting $0.7035 after the Reserve Bank of Australia made up its mind to hold its cash rate at 1.50%. Ahead of the policy verdict, a slim majority of financial analysts interviewed by Reuters had hoped Australia’s major bank would keep rates on hold, despite calls for an easing intensified after dismal first-quarter inflation.
While the RBA kept policy on hold, it generally welcomed future cuts if the jobs market didn’t manage to push unemployment down as retailers experienced their worst quarter for seven years.
Versus the Japanese yen, the Australian dollar last rallied by 0.5% hitting 77.82 yen.
In addition to this, the evergreen buck kept mostly to familiar ranges versus key counterparts, even as remarks from top American trade statesmen that China had drifted away from trade-related commitments put pressure on American bond gains as well as stock futures.
Versus a group of its main counterparts, the USD index slumped by 0.1% being worth 97.409, having concluded the previous trading session almost intact.
Eventually, futures for the S&P 500 headed south reacting to the remarks. American 10-year Treasury bond gains reached their lowest value since May 1.
The evergreen buck headed south a bit versus the common currency and the UK pound on Tuesday, although its moves versus those currencies were much less pronounced than the Australian dollar’s moves.
The common currency last hit $1.1210, adding by 0.1% on the day. As for the UK pound, it surged by 0.2% reaching $1.3122.
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.
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.
2022 was rough: inflation, energy crisis, and plenty of other controversial situations…