ANTIPODEAN CURRENCIES HEAVILY IN FOCUS

RBA AND RBNZ DECIDE

During the upcoming trading week, the Reserve Bank of Australia and Reserve Bank of New Zealand decide on interest rates. Both the RBA and the RBNZ are expected to key rates on-hold, however, the Australian and the New Zealand economy have recently seen improving domestic data and rising inflation figures, increasing the chances that both central banks may release hawkish policy statements.

This week we also see the release of key Gross Domestic Product data from the United Kingdom and Japanese economies. The American economy releases important CPI and PPI inflation data, while the Canadian economy gives investors a snapshot of domestic employment and unemployment with key monthly jobs data.

Monday 6th August, EUR German Factory Order

German Factory Orders are expected to show a monthly contraction in July, with a disappointing -0.1% reading. German Factory orders are an economic indicator that reports the level of new factory orders for both durable and non-durable goods. The demand for German industrial products reflects the strength of the Factory Orders, with a rising monthly figure usually indicating an expansion of the German economy.

• The EURUSD pair is bearish while trading below the 1.1600 level, key support is found at the 1.1507 and 1.1410 levels.
• If the EURUSD pair moves above the 1.1600 level, buyers will likely test towards the 1.1650 and 1.1681 resistance levels.

Tuesday 7th August, AUD RBA Rate Decision

The Reserve Bank of Australia Interest Rate Decision is delivered monthly by the RBA, with most economists agreeing that the Australian central bank with keep interest rates unchanged at 1.5% this month. The Reserve Bank of Australia's rate statement is also important as it contains the outcome of the bank's interest rate decision, which discusses the economic conditions that influenced the decision.

• The AUDUSD pair is bearish while trading below the 0.7510 level, key support is found at the 0.7330 and 0.7250 levels.
• If the AUDUSD pair trades above the 0.7510  level, buyers may test towards the 0.7580 and 0.7655 levels.

Wednesday 8th August, NZD RBNZ Rate Decision

The RBNZ Interest Rate Decision, published by the Reserve Bank of New Zealand, represents the RBNZ Governor Adrian Orr’s decision concerning where to set the nations interest rate, after consulting senior bank staff and external advisers. Most market participants expect that the New Zealand central bank will keep rates unchanged at 1.75% this month, whilst acknowledging rising domestic inflationary pressures.

• The NZDUSD pair is bearish while trading below the 0.6780 level, further downside towards 0.6688 and 0.6590 seems possible.
• If the NZDUSD pair moves above the 0.6780 level, buyers are may test towards the 0.6820 and 0.6900 resistance levels.

Thursday 9th August, USD Producer Price Index

The US Producer Price Index released by the Bureau of Labor statistics measures changes in the selling prices producers charge for goods and services inside the American economy. The Producer Price Index is valuable as an early indicator of inflation because producers tend to pass on higher costs to consumers as higher retail prices.

• The USDJPY pair is bearish while trading below the 111.37 level, key weekly support is found at the 110.55 and 109.56 levels.
• If the USDJPY pair moves above the 111.37 level, buyers may test towards the 112.20 and 113.00 resistance levels.

Friday 10th August, CAD Employment Change

The Canadian employment Change is released each month by the Statistics Canada and measures the change in the number of people employed inside the Canadian economy. The indicator is important because rising employment, consumption and expenditures may lead to increased inflationary pressures that may encourage the Bank of Canada to tighten monetary policy.

• The USDCAD pair is bearish while trading below the 1.3060 level, further losses towards 1.2910 and 1.2840 levels remains possible.
• If the USDCAD pair trades above the 1.3060 level, buyers are likely to test the 1.3123 and 1.3220 resistance levels.