The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
Will American GDP growth boost USD?
What will happen?
United States Bureau of Economic Analysis will release quarterly preliminary GDP growth on February 24, at 15:30 GMT+2. This is the annualized change in the value of all goods and services produced by the economy. This indicator is one of the basic ones and shows the health of a country’s economy in general. This time the second estimate of the US GDP growth is published.
How will it affect the dollar?
The better the situation in American economy, the greater the probability that the Fed will raise its interest rate. As a result, when the actual figure is greater than expected, it’s good for the US dollar.
On November 24, 2021, the last release of the preliminary US GDP growth led to the gradual boost of the USD approximately by 300 points during the day, even though the difference between the predicted indicator and the actual was only 0.1%. Most likely, next week’s announcement will immensely influence the USD.
How to trade on the prelim GDP release?
Due to the significance of the GDP data, it will influence USD pairs in any case. Therefore, any result will lead to the volatility of this currency, either in a good way or vice versa.
If the indicator is the same as expected or higher, the US economy is doing great, and the USD will rise. On the other hand, if it’s lower than the prediction, it can show the problems of the US economy, so the USD may fall for a short period of time.
Check the economic calendar
Instruments to trade: EUR/USD, NZD/USD, USD/JPY, USD/CAD
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.
The US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.