INVESTORS LOOK TO THE RBNZ RATE DECISION AND INFLATION DATA FROM THE UNITED STATES
INTEREST RATES AND INFLATION RETURN TO THE SPOTLIGHT
In the upcoming trading week, the Reserve Bank of New Zealand decides on interest rates, and RBNZ Governor Graeme Wheelers communicates his current thoughts on the domestic economy and monetary policy to investors.
We also see a key speech from FOMC voting member James Bullard, and the release of July PPI and Core CPI figures from the United States, as the Federal Reserve start to raise concerns about persistently weak inflation in the U.S economy.
Monday 7 August, Eurozone Sentix Investor Confidence
The Sentix Investor Confidence Index rates the relative six-month economic outlook for the euro zone. The data is compiled from a survey of about 2,800 investors and analysts. A reading above zero indicates optimism, and a reading below zero indicates pessimism.
Tuesday 8 August, U.S JOLTs Job Opening
The JOLTS job opening report is from the U.S Bureau of Labor Statistics to help measure U.S job vacancies. It collects data from employers about their businesses employment, job openings, recruitment, hires and separations.
A job is "open" only if it meets all three of the following conditions:
1. A specific position exists and there is work available for that position.
2. The job could start within 30 days, if the establishment finds a suitable candidate during that time.
3. There is active recruiting for workers from outside the establishment location that has the opening.
Wednesday 9 August, RBNZ Interest Rate Decision and Policy Statement
Financial markets are expecting Reserve Bank of New Zealand policy makers to keep interest rates unchanged, at 1.75 percent.
However, recent softer than expected economic data releases, and the rising value of the New Zealand dollar may be acknowledged in the policy statement, and press conference held by RBNZ Governor Graeme Wheeler.
Thursday 10 August, CHINA New Yuan Loans
Chinese banks are forecasted to have issued 790 billion yuan of new loans during the month of July, sharply down from the previous months figure of 1540 billion yuan.
A much weaker than expected new loans headline figure, may cause volatility in Chinese equities, and commodity related currencies.
Friday 11 August, United States Consumer Price Index
U.S inflation is expected to rise by 1.8% on an annual basis, in both the consumer price index, and the consumer price index excluding food and energy reading.
The CPI data for the month of July comes at a time when the Federal Reserve are holding back of further monetary policy tightening, due to persistently low inflation in the U.S economy.