Week Ahead 5/6/23: RBA, BoC rate decisions; German factory data

For a trade on the economic numbers Axel chooses EUR/GBP on German factory data.

Outside of this watch out for potential moves for the Australian dollar and Canadian dollar on interest rate decisions.

(Video Transcript)

05/06/2023

Let's take a look ahead to the week starting Monday the 5th of June. And so we begin with the economic calendar and we start first thing in the morning on Monday. You remember last week we had some relatively positive news coming through from the Chinese manufacturing PMI data from both the NBS and then we got the Caixin Services number out on Monday. Will it show the same sort of building resilience within the Chinese economy in the services sector?

German trade numbers out early morning in the European markets. And also ahead, we've got producer prices across the eurozone and later on in the day, the ISM services PMI data along with American factory orders.

06/06/2023

We get the first of three big interest rate meetings and the decisions on Tuesday morning. The first one is the Reserve Bank of Australia (RBA). It's widely expected we'll see a 25-basis point interest rate rise. Could there be a shock to that? And will we see anything in the commentary around that, that could give a steer to the Australian dollar?

Also, overnight we get the BRC retail sales monitor out where we get a snapshot of what's happening within the British retail sector. German factory orders, eurozone retail sales, and later in the day the API crude oil inventories which have recently been rising.

Once again, you see more oil coming onto the market, especially with that relatively cheap Russian crude coming through the gates in some of those economies that are accepting it, such as China and India.

07/06/2023

First quarter (Q1) GDP growth numbers coming through very early on in the day. So far as the markets are concerned in Australia, again looking out for the Australian dollar in result of that, that's the final snapshot of first quarter numbers. So it may not move the markets very much.

Chinese trade numbers out as well overnight. And then the Halifax House price index here in the UK. If can remember a couple of days ago, we saw numbers coming through from Nationwide which showed the biggest slump, if you like, in house prices in 14 years, it was only between 3- and 4% around the country. But nonetheless, that just goes to show how much upside there has been over the last decade or so.

US trade numbers, EIA crude oil inventories and also the second of three interest rate meetings in Canada. This one is the Bank of Canada interest rate decision - not expected to move on rates. Again, watch out for the Canadian dollar for any surprise coming through from that central bank.

08/06/2023

Thursday, Japanese first quarter GDP growth numbers, Australia trade balance, eurozone GDP - these are all final readings for first quarter numbers for GDP. And the weekly initial jobs claims in the States.

09/06/2023

On Friday, just to wrap up the week we get the RBI interest rate decision. Just a snapshot of the Indian central bank decision early doors on Friday. Then the Chinese consumer prices, Canadian unemployment and the US Baker Hughes rig count.