The Week Ahead Currency Focus Shifts to Australia and New Zealand

The past week was clearly a busy one for currency markets, filled with major macroeconomic events and data releases, most notably the US Federal Reserve’s FOMC statement, the Bank of England’s rate hike, the Bank of Japan’s policy decision, and key data on jobs and economic growth from both the U.S. and Canada.

Other key developments this past week included President Trump’s long-awaited nomination of Jerome Powell, current member of the Fed Board of Governors, to lead the central bank after current Chair Janet Yellen’s term expires in February. This nomination was a safe one for Trump, and should help instill continuity to the Fed’s gradual path towards tighter monetary policy. In addition, this past week also saw the release of a new tax plan by the House of Representatives that potentially forms the beginnings of comprehensive tax reform and further US fiscal policy developments.

After such a busy week of currency-moving events, the week ahead slows down considerably, but still features two major central bank decisions – the Reserve Bank of Australia (RBA) on Tuesday and the Reserve Bank of New Zealand (RBNZ) on Thursday. Neither central bank is expected to make any significant policy or rate changes at this time, but the content of their policy statements will shift the currency market focus squarely towards the Australian and New Zealand dollars in the week ahead.

Here are some of the key events scheduled:

· Monday, November 6:

o New Zealand Inflation Expectations (Q/Q)

· Tuesday, November 7:

o Reserve Bank of Australia Cash Rate and Rate Statement

· Thursday, November 9:

o Reserve Bank of New Zealand Official Cash Rate, Rate Statement, Monetary Policy Statement, and Press Conference

o China Consumer Price Index (Y/Y) and Producer Price Index (Y/Y)

o US Weekly Unemployment Claims

· Friday, November 10:

o Reserve Bank of Australia Monetary Policy Statement

o UK Manufacturing Production (M/M)

The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

The products and services available to you at FOREX.com will depend on your location and on which of its regulated entities holds your account.

FOREX.com is a trading name of GAIN Global Markets Inc. which is authorized and regulated by the Cayman Islands Monetary Authority under the Securities Investment Business Law of the Cayman Islands (as revised) with License number 25033.

FOREX.com may, from time to time, offer payment processing services with respect to card deposits through StoneX Financial Ltd, Moor House First Floor, 120 London Wall, London, EC2Y 5ET.

GAIN Global Markets Inc. has its principal place of business at 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA., and is a wholly-owned subsidiary of StoneX Group Inc.