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.
Chinese Yuan rebounds
On Tuesday, the Chinese Yuan managed to rebound in Asia reacting to reports that the Asian country’s state-backed funds, dubbed the “National Team,” have pumped cash into the market in an attempt to back local stocks as well as currency.
The currency pair USD/CNY headed south by about 0.1% being worth 6.8712. Referring to unnamed sources, the Hong Kong Economic Times informed that China’s National Team intervened and also injected money into the financial markets, although the report didn’t offer any further details. In fact, the news spurred investor sentiment. As a result, Chinese shares tacked on immediately reacting to the report, before returning to the red shortly after.
The major Chinese currency headed south to four-month minimums versus the evergreen buck overnight after the Chinese cabinet announced on Monday it was lifting levies on $60 billion of American products from June 1.
The move occurred several days after the US government dared to escalate the trade tensions with another tariff lift on $200 billion of Chinese exports on Friday. American leader told that China is going to be heavily affected if this Asian country fails to make a deal with the United States. He added that many US companies will have to abandon China in favor of other countries.
Steven Mnuchin added that the two leading economies are still negotiating their trading issues. Donald Trump stressed that in that long-lasting trade conflict his country has a sort of advantage because the American economy is currently in good shape.
Besides this, US President told that he’s going to meet his Chinese rival Xi Jinping in Japan at next month’s G-20 summit.
AUD/USD and NZD/USD rallied respectively 0.2% and 0.3%.
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.