Central bank actions and Canadian job report in focus

US markets closed for Labor Day

By Laila Eid | @Laila Eid | 3 September 2023

Week 3 _ 3 Sept
  • Reserve Bank of Australia's cash Rate announcement

  • Bank of Canada's interest rate decision

  • Canadian job report on Friday

Key economic events this week

The week kicks off with a quiet start as US markets remain closed on Monday in celebration of Labor Day. investors will be gearing up for a week packed with economic updates and central bank decisions from around the globe.

On Tuesday, all eyes will be on the Reserve Bank of Australia (RBA) as it announces the Cash Rate. The forecast stands at 4.1%, mirroring the previous rate. Investors will be keen to decipher the RBA's policy stance in light of economic uncertainties both domestically and globally.

Wednesday brings significant data. The Australian Statistician will release the Gross Domestic Product (GDP) figures for the year-on-year (YoY) growth. Expectations point to a slowdown, with a forecast of 1.7%, down from the previous reading of 2.3% in Q2 YoY. Additionally, on a monthly basis, the economy is expected to grow by 0.3%. These figures will provide insights into Australia's economic health.

Also on Wednesday, the Bank of Canada will announce its interest rate decision. Market consensus suggests that the bank will likely hold interest rates steady at their current level 5.00%. The outcome of this decision will be closely watched, followed by the US ISM Services PMI.

Finally, on Friday, investors will turn their attention to Canada as Statistics Canada reports the Employment Change and Unemployment Rate. Expectations indicate that the unemployment rate is likely to inch up from 5.5% to 5.6% in August. These figures will provide valuable insights into the Canadian labor market.