FOMC meeting minutes to set the weekly market tone
During the upcoming week the Federal Open Market Committee meeting minutes and a scheduled speech from FED Chair Jerome Powell headline the economic docket. Traders and investors will pay close attention to the FOMC meeting minutes, following recent positive economic data points from the United States economy. The overall tone from FED Chair Powell could also be a big market for the financial market this week.
Other important events on the economic calendar this week include the release of the Reserve Bank of Australia interest rate and the Canadian monthly jobs report. Traders also look to the release of the US ISM-Non Manufacturing release and Consumer Price Index inflation numbers from the Chinese economy.
Monday 5th April, ISM Non-Manufacturing Index
The ISM Non-Manufacturing Index is released by the Institute for Supply Management, (ISM), which shows business conditions in the United States non-manufacturing sector. It is worth noting that the non-manufacturing sector does not influence, either positively or negatively, the United States GDP as much as the ISM Manufacturing does. A reading above 50 is considered positive for the US dollar, while a number below 50 is seen as negative for the US dollar
- The EURUSD pair is only bullish while trading above the 1.1860 level, key resistance is found at the 1.1890 and 1.1930 levels.
- If the EURUSD pair holds below the 1.1860 level, sellers may test towards the 1.1710 and 1.1600 levels.
Tuesday 6th April, RBA Rate Decision
The Reserve Bank of Australia Rate Decision is the market interest rate on overnight funds, with the RBA standing as the central monetary authority for the Australian economy. The Reserve Bank of Australia is widely expected to keep interest rates on hold at this meeting, following recent rate cuts and rising global COVID-19 infections. RBA policymakers are also tipped to strike a cautious tone towards the economy and monetary policy.
- The AUDUSD pair is only bearish while trading below the 0.7620 level, key support is found at the 0.7500 and 0.7430 levels.
- If the AUDUSD pair moves above the 0.7620 level, buyers may test towards the 0.7660 and 0.7700 levels.
Wednesday 7th April, US FOMC Minutes
The FOMC Minutes are released by the Board of Governors of the Federal Reserve and are a clear guide to the future US interest rate policy. The Federal Open Market Committee organizes eight meetings in a year and reviews economic and financial conditions, and determines the appropriate stance of monetary policy. Financial market participants closely watch the release of the FOMC Meeting Minutes.
- The USDCHF pair is only bearish while trading below the 0.9240 level, further losses towards 0.9100 and 0.9050 levels remain possible.
- If the USDCHF pair trades above the 0.9240 level, buyers are likely to test the 0.9380 and 0.9450 resistance levels.
Thursday 8th April, US Initial Jobless Claims
US Initial Jobless Claims is released by the US Department of Labor on a weekly basis and is a measure of the number of jobless claims filed by individuals seeking to receive state jobless benefits. This figure measures the overall strength in the United States labor market and is closely followed by both traders and investors.
- The USDJPY pair is only bearish while trading below the 109.00 level, key support is found at the 108.40 and 108.00 levels.
- If the USDJPY pair moves above the 109.00 level, buyers will likely test towards the 111.00 and 112.00 resistance levels.
Friday 9th April, Canadian Monthly Jobs Report
The Canadian Employment Change is released by Statistics Canada and is a measure of the change in the number of employed people in Canada. Generally speaking, a rise in this indicator has positive implications for consumer spending which stimulates economic growth. Therefore, a high reading is seen as positive, or bullish for the Canadian dollar currency, while a low reading is seen as negative or bearish for the Canadian dollar currency.
- The USDCAD pair is only bearish while trading below the 1.2570 level, key support is found at the 1.2500 and 1.2430 levels.
- If the USDCAD pair trades above the 1.2570 level, buyers will likely test towards the 1.2640 and 1.2740 resistance levels.