Upcoming Week: Attention on Global Central Banks and Key Economic Indicators

This week, market movements will be influenced by the decisions of central banks and a range of economic data. Investors will carefully observe indicators such as ISM PMI, jobless claims, trade data, and the commentary from central banks.
Highlights

• "The performance of the USD will hinge upon key factors such as the ISM Non-Manufacturing PMI, jobless claims, and commentary from the Federal Open Market Committee (FOMC)."

• "The AUD could be significantly impacted by the Reserve Bank of Australia's (RBA) decision on interest rates, retail sales data, and second-quarter GDP figures."

• "Market sentiment may be influenced by China's Caixin Services PMI and trade data for August."

For the US Dollar:

Important Indicators for USD: The ISM Non-Manufacturing PMI survey on Wednesday will be closely watched ahead of the Fed meeting. The market will also focus on jobless claims on Thursday. Other stats such as factory orders, trade data, and finalized Markit services PMI figures will have limited impact on Fed monetary policy sentiment. Fed Vice Chair John Williams will speak on Friday.

For the Euro (EUR):

Eurozone Economic Outlook: German trade data on Monday, service sector PMIs for Italy, Spain, and Eurozone countries on Tuesday, and German economy-related figures on Wednesday and Thursday will be crucial. Eurozone GDP numbers for Q2 and finalized inflation figures from Germany on Thursday will also affect sentiment. Investors should follow the ECB calendar and news wires for commentary.

For the British Pound (GBP):

Pound Market Influence: The BRC Retail Sales Monitor report on Tuesday will set the tone. Finalized service sector PMI numbers will be in focus as well as construction and composite PMI numbers, and housing price figures. Investors will monitor BoE commentary. No MPC members are scheduled to speak this week.

For the Canadian Dollar (CAD):

Bank of Canada (BoC) Influence: The BoC's interest rate decision on Wednesday will be the main event. Trade data on Wednesday and employment figures on Friday will also provide direction for the Loonie.

For the Australian Dollar (AUD):

RBA Decision and Economic Indicators: The RBA's interest rate decision on Tuesday will be significant. Retail sales numbers on Tuesday and Q2 GDP figures on Wednesday will also be important. Trade data for July will conclude the busy week.

For the New Zealand Dollar (NZD):

Kiwi Market Sentiment: Private sector PMIs from China and market risk sentiment will influence the Kiwi Dollar. China Caixin Services PMI on Tuesday and trade data on Thursday will be among the key indicators.

For the Japanese Yen (JPY):

Yen Focus: Household spending and services PMI numbers on Tuesday will be in focus. Bank of Japan Governor Ueda's comments and second-quarter GDP numbers on Friday will also impact the Yen. Bank of Japan Board Member Nakagawa will speak, and hawkish chatter would provide Yen support.

Analysis of China's Economic Indicators:

China Caixin Services PMI on Tuesday: Following the positive Manufacturing PMI, an increase in service sector activity would alleviate concerns about the economy.

August trade data: It is crucial for the trade data to show positive signs in order to stimulate demand for riskier assets.