Reserve Bank of Australia Rate Decision Ahead – AUD, GBP, EUR, NZD Currency Forecast

02 July 2017 by News Desk   |   SHARE  

This week could be an interesting one with a raft of economic data and central bank developments due to make their way onto the scene, say industry experts FC Exchange.

Australian Dollar (AUD)

The Aussie dollar could be in for some movement on Monday with the release of the Australian AiG performance of manufacturing index, TD Securities inflation, and building approvals numbers all due out.

However, Tuesday might steal the show with the release of the Reserve Bank of Australia (RBA) rate decision. Although the RBA have been keeping interest rates on hold, policymakers have suggested they’re keeping a close eye on both the labour and housing markets.

Thursday will continue with trade balance numbers, before Friday closes the week with the Australian AiG performance of construction index and foreign reserves numbers.

Additionally, Chinese data such as the Caixin purchasing managers’ indexes (PMI’s) and foreign direct investment numbers could play their part in altering Australian dollar value.

Pound Sterling (GBP)

Monday will begin the week with Markit’s UK manufacturing and construction PMI’s on Wednesday. Also out on Wednesday will be the British Retail Consortium’s (BRC’s) shop price index for June, the previous reading came in at -0.4% and therefore any improvement on that number is likely to bode well for the pound. Later in the session, UK new car registrations and Markit’s services and composite PMI’s will be released. Markets are closely watching UK economic data for clues of how well the economy is performing post-EU Referendum.

Friday will close the week with a selection of moderately influential economic data such as UK industrial production, manufacturing production, construction output, trade balance numbers, and the NIESR gross domestic product estimate.

Euro (EUR)

Monday will begin the week for the Eurozone with the release of the currency bloc’s unemployment rate, followed by retail sales numbers on Wednesday. However, Thursday has the potential to be the most interesting day for the euro with the release of German factory orders, German construction and retail PMI’s and the European Central Bank’s (ECB’s) account of the monetary policy meeting. Investors may pay close attention to the account for hints as to whether the central bank is considering adjusting its monetary policy.

New Zealand Dollar (NZD)

Monday kicks off the week with New Zealand dairy auction prices which may influence the Kiwi exchange rate. However, this is the only moderately influential data out for the week ahead, as only a few low-tier ecostats scatter the rest of the week.

Disclaimer: This economic update is provided by FC Exchange a Global Reach Group Company, industry leaders in foreign exchange. Authorised affiliates are permitted to reuse content.

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