Weekly Overview
This week, global financial markets will be closely monitoring a series of high-impact economic events that have the potential to influence investment decisions and market trends significantly. Here’s what to look for in the coming week:
Monday, August 5:
China’s Caixin Services PMI for July will be closely watched to assess the pace of recovery in the service sector, previously reported at 51.2. The strength of this sector is crucial for the overall economic stability of the country.
In the U.S., the ISM Services PMI is expected to make headlines with forecasts pointing towards a rebound to 51.0 from the previous 48.8, potentially signaling a resurgence in the non-manufacturing sectors.
Tuesday, August 6:
The Reserve Bank of Australia (RBA) will announce its interest rate decision, a key event for traders, with the current rate at 4.35%. Accompanied by the RBA Monetary Policy Statement and Rate Statement, insights into the economic outlook and future monetary policy are anticipated.
The RBA’s Governor will also hold a press conference, which could provide further volatility to the AUD pairs as investors look for cues on future policy shifts.
Eurozone’s Retail Sales data for June will also be released, offering insights into consumer confidence and spending trends within the bloc. The previous year-on-year increase was a modest 0.3%.
Wednesday, August 7:
New Zealand’s labor market data will be in focus late in the day with the Employment Change and Unemployment Rate for Q2 due for release. The job market's resilience will be tested, with previous figures showing a -0.2% change in employment and an unemployment rate of 4.3%.
Thursday, August 8:
Australia’s financial calendar continues to engage markets with a speech from RBA Governor Bullock, potentially elaborating on the central bank’s views and monetary policy direction post-interest rate decision.
New Zealand’s RBNZ Inflation Expectations for the third quarter will also provide critical insight into future inflation paths, essential for assessing upcoming RBNZ monetary policy adjustments.
Friday, August 9:
China’s Consumer Price Index for July will offer another glimpse into the country's inflationary pressures, critical for policy making. The inflation rate previously stood at a tepid 0.2% year-on-year.
In Europe, the Harmonized Index of Consumer Prices for July will reveal the latest inflation trends, previously recorded at 2.6% year-on-year, a critical factor influencing ECB policy moves.
Canada’s employment data will close out the week, with the Net Change in Employment and the Unemployment Rate for July expected to shed light on the health of the labor market after disappointing previous figures.
Each of these events could sway markets significantly, providing both challenges and opportunities for traders. As always, it is advisable for you to stay well-informed and prepared for potential volatility surrounding the release of these macro indicators.
Stay tuned and trade safely as we navigate another week of important economic events.
