Traders on high alert for central bank action this week
During the upcoming trading week, the Reserve Bank of Australia interest rate decision takes center stage, with expectations high that the Australian central bank could cut interest rates on Tuesday. Global inflation and Gross Domestic Product data is also heavily in focus this week as we see Consumer Price Index figures from the United States and Chinese economies and important quarterly Gross Domestic Product data from the United Kingdom and Indonesian economies.
This week we also see an important rate decision from the Reserve Bank of New Zealand and Trade and Manufacturing data from the Chinese economy. The Canadian economy also releases Trade, Employment and Unemployment figures for the month of April.
Monday 6th May, CNY Chinese Services PMI
The China Services Purchasers Managers Index is released by Markit Economics and is key composite compiled by monthly questionnaires sent to purchasing executives in over 400 private service sector companies. The Services PMI panel has been carefully selected to accurately replicate the true structure of the services inside the Chinese economy.
- The EURUSD pair is only bearish while trading below the 1.1164 level, key support is found at the 1.1135 and 1.1040 levels.
- If the EURUSD pair TRADES above the 1.1164 level, key resistance is found at the 1.1220 and 1.1264 levels.
Tuesday 7th May, AUD RBA Rate decision
The Reserve Bank of Australia rate decision is the market interest rate on overnight funds, with the RBA standing as the central monetary authority for the Australian economy. The Reserve Bank of Australia may change the nations interest rate at this meeting, following recent much weaker than expected inflation data and an overall rise in the nations unemployment rate.
- The AUDUSD pair is bullish while trading above the 0.7030 level, key resistance is found at the 0.7080 and 0.7245 levels.
- If the AUDUSD pair moves below the 0.7030 level, sellers may test towards the 0.6980 and 0.6890 levels.
Wednesday 8th May, NZD RBNZ Rate Decision
The RBNZ Interest Rate Decision, published by the Reserve Bank of New Zealand, represents the Central Bank Governor’s decision concerning where to set the nations interest rate after consulting senior bank staff and external advisers. The RBNZ has kept monetary policy unchanged since November 2016 and is widely tipped to maintain the nations interest rate at 1.75 percent this week.
- The NZDUSD pair is only bullish while trading above the 0.6580 level, further upside towards the 0.6660 and 0.6740 levels seems likely.
- If the NZDUSD pair moves below the 0.6580 level, sellers are likely to test towards the 0.6545 and 0.6480 support
Thursday 9th May, CNY Chinese Consumer Price Index
The Chinese Consumer Price Index is released by the National Bureau of Statistics of China and measures the change in the price level of a market basket of consumer goods and services purchased by Chinese households. CPI is considered a key indicator that measures inflation and changes in purchasing trends. The monthly and annual Consumer Price Index is one of the most frequently used statistics for identifying periods of inflation or deflation.
- The USDJPY pair is only bullish while trading above the 111.60 level, further upside towards 112.00 and 112.60 levels remains possible.
- If the USDJPY pair trades below the 111.60 level, sellers are likely to test the 110.80 and 110.10 support levels.
Friday 10th May, CAD Canadian Employment Change
The Canadian monthly Employment Change is released by Statistics Canada and measures the change in the number of people employed in the Canadian economy. If the Canadian monthly Employment Change is better than expected it raises the chances that the Bank of Canada may increase interest rates. A weaker than expected number may cause the Canadian dollar to weaken, as it may force the Bank of Canada to be more cautious.
- The USDCAD pair is only bullish while trading above the 1.3360 level, further upside towards 1.3550 and 1.3680 levels then remains possible.
- If the USDCAD pair trades below the 1.3360 level, sellers are likely to test the 1.3310 and 1.3240 support levels.