- About Us
- Research & Tools
- Contact Us
- Choose Language
We have seen a week full of economic events and developments regarding the COVID-19, but this week may not be any less important than last week, as we wait for many economic data that will prove the trends of the major economies amid global health crisis threatening the global economy.
The Australian dollar bounced higher again to opening levels after falling in early trading, following Australian labor market data, which came within the expectations adding 14,000 jobs in June and participation rate rose to a 17-month high of 65%. The reason of declining of AUD is the downward revision of the employment change index and unemployment rate. The AUDUSD is now approaching its daily high of 0.7988, which is also its highest level in more than two years.
The economic calendar was not full of major economic events today. Most of the moves was in the trading range since of the beginning of the week, as markets awaiting a number of economic data tomorrow, as the Bank of Japan's monetary policy decision is likely to remain unchanged, plus that markets will also be looking closely at the ECB's statement and whether Draghi will give any hint on tightening monetary policy or easing the monetary easing program.
The Reserve Bank of Australia (RBA) showed optimism for the Australian economy to grow in the second quarter of 2017 as the bank's decision to hold interest rates at 1.50% at its historic low earlier this month as consumption growth recovered despite pressure from high levels of debt. The Australian dollar rose strongly against the US dollar, reaching a two-year high of 0.7942.
Asian stocks rose today to their highest level in two years, supported by the unexpected growth of the Chinese economy. Chinese stocks managed to erase their sharp losses at the start of trading after data showed the growth of the second largest economy in the world slightly stronger than expected at 6.9% This is due to strong industrial production, which recorded the highest rise since April 2016, as well as retail sales and exports.
The attention is once again turning to a number of central banks, waiting for what they will decide and whether it will turn towards narrowing the gap between their policies and the policy of the FED, which is on the path of tightening monetary policy and raise interest again before the end of this year. On the other hand, the markets keep their eyes on the Chinese economy and the data that may confirm the stability of the second largest global economies.
US stocks rose at the beginning of the day after FED Governor Janet Yellen confirmed the gradual rate hike and that raising it again this year would be appropriate. She pointed out that the economy is strong enough to accommodate further gradual rise in interest rates, and reducing the Fed's huge portfolio of bonds.
The economic calendar did not differ much from yesterday and was not filled with important economic data or events except from a few speeches from members of the FED and the BOE.
The economic calendar today was free of any major events or economic data, and the markets did not see any noticeable movements during today's trading. In today's economic data, China's inflation figures did not change in June as the CPI rose 1.5% and the PPI rose by 5.5% the same reading of May.
Prices may be delayed by 5 seconds. Prices above are subject to our website terms and conditions. Prices are indicative only