RBA RATE DECISION AND GLOBAL GROSS DOMESTIC PRODUCT IN FOCUS
RBA AND GDP
During the upcoming trading week, the Reserve Bank of Australia takes center stage, as they decide on where to set the nation's interest rate. Most market participants expect that Reserve Bank policy makers will keep rates unchanged, and strike a dovish tone towards the domestic economy and future rate hikes.
We also see the release of the key Gross Domestic Product data from the eurozone, Japanese and Australian economies. The Canadian economy is also in focus this week with Unemployment and Employment data, while Bank of Canada Governor Stephen Poloz delivers a scheduled speech.
Monday 4th June, UK Construction PMI
The UK Construction Purchasing Manager Index, released by the Chartered Institute of Purchasing & Supply and Markit Economics is a monthly measure of construction sector activity inside the United Kingdom. The PMI summarizes the opinions of executives in the construction sector who give a picture of the future of the construction sector.
The GBPUSD pair is bullish while trading above the 1.3300 level, further upside towards the 1.3400 and 1.3450 levels seems possible.
If the GBPUSD pair declines below the 1.3300 level, sellers are likely to test the 1.3258 and 1.3200 support regions.
Tuesday June 5th, AUD RBA RATE DECISION
The Reserve Bank of Australia rate decision sets the market interest rate on overnight funds, and stands as the central monetary authority for the Australian economy. Most economists have come to a consensus that the Reserve Bank of Australia will maintain the key interest rate at 1.50 percent for a twenty-second consecutive month. The RBA is also expected to acknowledge that weak consumer-spending, and sluggish wage growth is holding the domestic economy back.
The AUDUSD pair is bearish while trading below the 0.7650 level, further losses towards the 0.7500 and 0.7430 levels may occur.
If the AUDUSD pair trades above the 0.7650 level, buyers may test towards the 0.7712 and 0.7755 levels.
Wednesday June 6th, Swiss CPI
The Swiss Consumer Price Index, released by the Swiss Federal Statistical Office, measures the change in the price of goods and services from the perspective of the consumer. The figure is the main indicator to measure inflation and changes in purchasing trends. Inflation reflects a decline in the purchasing power of the Franc, where each Franc buys fewer goods and services.
The USDCHF pair is bearish while trading below the 0.9900 level, further downside towards 0.9740 and 0.9640 appears possible.
If the USDCHF pair moves above the 0.9900 level, buyers are likely to test the 0.9935 and 0.9980 resistance levels.
Thursday June 7th, Eurozone GDP
Eurozone Gross Domestic Product is released by Eurostat, and is a measure of the total value of all goods and services produced by the Eurozone. GDP is the most easily comprehensible mean of measuring the economic output, and facilitates key insight in regards to the driving forces of the economy. The GDP rate of growth acts as an indicator for the stability of eurozone economies, with strong GDP growth signaling an increase of economic activity levels, which usually is positive for the euro currency.
The EURUSD pair is bearish while trading below the 1.1700 level, further downside towards 1.1600 and 1.1550 seems possible.
If the EURUSD pair moves above the 1.1700 level, buyers may test towards the 1.1750 and 1.1865 levels.
Friday June 8th, Canadian Unemployment Rate
The Canadian Unemployment Rate, released by the Statistics Canada, measures the percentage of the total workforce that is unemployed and actively seeking employment during the previous month. It is a leading indicator for the Canadian Economy. A higher unemployment rate tends to lead to lower consumer spending and a contracting economy.
The USDCAD pair is only bullish above the 1.2900 level, key resistance is found at the 1.3000 and 1.3146 levels.
If the USDCAD pair fails to hold above the 1.2900 level, key support is then found at the 1.2840 and 1.2732 levels.