1Finance

The US dollar was on the back foot throughout most of the week as data remained mixed and speculation about the Fed decision mounts. A rate decision in Australia, the ECB’s critical decision and the UK elections stand out in the first full week of June. Here are the highlights for the upcoming week.

1. US ISM Non-Manufacturing PMI: Monday, 14:00. A score of 57.3 is predicted now.
2. Australian rate decision: Tuesday, 4:30. The Reserve Bank of Australia last changed interest rates in August but has adopted a neutral stance since then. The Cash Rate is expected to remain unchanged at 1.50% for another month and the Aussie will move on the tone of the statement. On one hand, the Australian economy is doing fine, with solid jobs growth and consumption. However, worries about China weigh on the outlook. In the past, the RBA took advantage of downfalls in the exchange rate to push the currency even lower. Will they hit the A$ when it’s down once again?
3. US JOLTS Job Openings: Tuesday, 14:00. If the Federal Reserve needs yet another jobs report in order to make its decision, the number of job openings serves as a hint. Despite being a laggard (the data is for April against May for the NFP), the publication still moves the needle as the Fed eyes it. In March, job opening stood at 5.74 million annualized. A small slide to 5.65 million is on the cards.
4. Australian GDP: Wednesday, 1:30. A growth rate of 0.3% is projected.
5. Crude Oil Inventories: Wednesday, 14:30. The weekly measure of oil inventories has an immediate impact on oil prices but also reflects on the global economy. Lower supply and marginally higher demand pushed inventories lower, helping oil prices stabilize.
6. UK elections: Thursday-Friday. The full results should be clear before European markets open at 7:00 GMT.
7. ECB rate decision: Thursday, the decision is at 11:45, Draghi’s press conference at 12:30.
8. Canadian jobs report: Friday, 12:30.

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