The coming week (August 5-11) may allow the markets to catch a breath after the very exciting first week of August. The combination of the Fed`s decision on interest rates, Donald Trump`s statement on new tariffs and labor market data from the United States led to very large fluctuations in the prices of individual assets. Now it can be a bit calmer.
Due to the small number of publications from the United States, investors' attention may be directed to other currencies. It seems that one of the most interesting may be Australian and New Zealand Dollars. On Tuesday, August 6 at 00:45 the data from the New Zealand labor market will be published. In turn, the day later at 04:00 the Reserve Bank of New Zealand will announce decision on interest rates. Market consensus assumes that currently the main interest rate will not change, remaining at 1.5 percent. Nevertheless, the market speculates that in the near future there will be a chance to cut the interest rate, which was reflected in the NZD/USD exchange rate, which in recent days has fallen from 0.6800 to 0.6520.
The decision of the Reserve Bank of Australia (RBA) on interest rates will be crucial for Australia's economy. Publication on Tuesday, August 6 at 6:30. This month the market does not expect the RBA to cut the main interest rate. It is to remain at the level of 1.00 percent. However, the RBA may give guidance on actions in the following months, as the base scenario seems to be a dovish approach to monetary policy, mainly due to the escalation of the US and Chinese trade wars. The behavior of the AUD rate in recent days indicates investors' very high hopes of easing monetary policy in Australia.
Here, in principle, the most interesting publications, which can have a significant impact on the market, seem to end, but we still need to remember about the British pound. In addition to the continuation of political events, preliminary GDP for the second quarter will be published. Reading on Friday, August 9 at 10:30.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal Opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trade this news from Conotoxia Ltd. platforms
Go to your account
