FEDERAL RESERVE HEADLINE AS FOUR CENTRAL BANKS DECIDE ON INTEREST RATES
CENTRAL BANKS DECIDE
The trading week ahead sees the U.S Federal Reserve, Swiss National Bank, Bank of England and European Central Bank delivering interest rate decision. The consensus from most economists, is the U.S Federal Reserve Bank will hike U.S interest rate by another 0.25 percent, bringing the overall rate to 1.50 percent.
After hiking at their last meeting, the Bank of England are expected to keep rates on hold, but may hint at the timing for the next rate hike for the UK economy in 2018. The European Central Bank and Swiss National Bank are expected to keep rates firmly on hold. However, ECB President Mario Draghi is expected to deliver an upbeat assessment of the European economy, during Thursday's policy statement.
Monday 11th December, U.S JOLTS Job Openings
The U.S JOLTS job openings is a survey done by the U.S Bureau of Labor Statistics, to help measure job vacancies in the United States. It collects data from employers about their businesses employment, job openings, recruitment, hires, and separations.
JOLTS defines job opening, as all positions that are open on the last business day of the month. The November figure is expected to come in-line with the previous month's number, of 6,090 million.
Tuesday 12th December, Australian Mid-Year Outlook
The Australian Mid-Year Economic and Fiscal Outlook is published by the Australian government every six months, and provides an update on the economic and fiscal outlook from the previous budget statement.
The Australian dollar remains bearish while trading below the 0.7510 technical level. Further losses towards the 0.7455 and 0.7330 levels should be expected.
Should price-action move above the 0.7510 level, further upside toward the 0.7555 and 0.7590 levels cannot be ruled out.
Wednesday 13th December, FED Interest Rate Decision
The Board of Governors of the Federal Reserve meet on Wednesday to decide on the U.S interest rate. Most market participants expect the Federal Reserve to hike U.S rates by 0.25 percent.
Generally speaking, when the policy statement is released, if the Federal Reserve are hawkish about future interest rate hikes, and the inflationary outlook of the economy, it should be taken as bullish for the U.S dollar.
The U.S dollar index remains bullish while trading above the 93.60 level. Buyers may move price toward the 94.05 and 94.80 upside targets.
Should price-action move below the 0.93.60 level, sellers will likely target the 93.20 and 92.60 support levels.
Thursday 14th December, ECB Interest Rate Decision
The six members of the European Central Bank Executive Board and the 16 governors of the euro area central banks vote on where to set the eurozone interest rate. Traders watch interest rate changes closely as short-term interest rates are the primary factor in currency valuation.
The EURUSD is expected to remain bearish while trading below the 1.1790 level, further downside towards 1.1713 and 1.1580 seems possible.
Should price-action move above the 1.1790 level, EURUSD buyers may push price towards the 1.1830 and 1.1900 levels.
Friday 15th December, Indonesian Exports
The Indonesian economy releases year-on-year comparison exports figures for the month of November, with economists expecting the headline number to show that exports increased 16.59 percent.
A higher than expected export number should be taken as positive to the Indonesian Rupiah currency, while a lower than expected number as negative for the currency.