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.
New Zealand dollar rallies on less-dovish RBNZ
On Wednesday, the currency pair NZD/USD managed to go up in Asia following a Reserve Bank of New Zealand verdict earlier in the day.
New Zealand’s major financial institution left the interest rates on hold at 1.75%. However, it stayed away from providing any new dovish clues for either future monetary policy updates or headline economic indicators.
Adrian Orr, RBNZ Governor also underpinned the major bank’s outlook and told that the chances of a rate cut hadn’t soared, while risks are quite balanced.
The currency pair NZD/USD was last seen at 0.6845, heading north by 1.7% due to the fact that financial markets were set for a much more dovish RBNZ.
In addition to this, the USD index inched down by 0.1% being worth 96.453. More upbeat news on the trade front coming from the American side improved risk sentiment and diminished demand for safe-haven assets, in particular, the evergreen buck.
On Tuesday, US leader told that he’s geared up towards extending the March 1 deadline if China and America manage to get closer to a trade agreement soon. Earlier US Treasury Secretary Steven Mnuchin told reporters that he really hopes for fruitful trade talks in China.
Their remarks helped to recover risk appetite in broader markets. As a result, Asian stock kept soaring for a second day.
The dive in the evergreen buck also came as Fed Chair Jerome Powell played down the likelihood of a recession in his country, repeating that the American economy is on firm footing.
The Chinese Yuan also rallied versus its US rival reacting to the news. As a matter of fact, the currency pair USD/CNY tumbled by 0.3% being worth 6.7536.
The currency pair USD/JPY headed north by 0.1% concluding the trading session at 110.57.
The currency pair AUD/USD soared by 0.5% hitting 0.7130.
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.