This week starts off relatively slow; with the usually sentiment data out from Australia. This is represented in the Consumer Sentiment and Business Confidence reports. Last month’s figures took an alternative response to what is usually expected out of the reports. The Business Confidence figure last month was slashed in half and the Consumer Confidence figure was in expansion. Last months results displaced the previous direction of the results, therefore this month’s expected release is now even harder to predict. There are no expectations for the figure but they will be the first important domestic releases to move the rate this week.
On to Thursday now, to start the day off and 12am AEST Thursday morning; we will be presented with the Interest Rate announcement from the Bank of Canada (BOC). The rate is expected to remain at record lows of 0.5% however; future rate speculation from the BOC will fuel any overnight movement.
Next to be released will be the Reserve Bank of New Zealand Interest Rate decision, this one being more interesting than the aforementioned Canadian decision; as the RBNZ are likely to cut the rate to 2.75% from the current 3%. These rates have been under pressure as a higher NZ Dollar has been placing additional economic pressure on dairy farmer exports out of New Zealand.
The Employment data from Australia is next out; at 11.30am AEST. It is expected that there will be some sort of expansion in the Employment change figure; the official expectation is that 5K jobs will be added. The Unemployment rate out of Australia is set to actually improve to 6.2% from 6.3% last month. Today’s (Monday 7th) Job advertisements figure should give analysts an indication of the employment figures on Thursday.
Out of China also at 11.30am AEST will be inflation figures for this month. The ‘Year on Year’ figure is expected to be released higher the previous figure of 1.6%; at 1.9%. This should assist the AUD, however, given the recent troubles in China; investors are not relying on this release for any support towards the AUD.
Lastly, to end the busy Thursday, the Bank of England will announce their Monetary Statement and Official Rate Decision. Interest Rates are expected to be on hold; however, most analysts will be waiting for the subsequent statement from the Governor of the BoE, Mark Carney, for hints about future monetary policy.