After a jobs-driven shakeup last week, this week’s calendar brings a fresh round of catalysts, headlined by a central bank decision and the inflation report traders have been waiting for. Here’s what’s on deck.
Tuesday brings the Reserve Bank of Australia’s rate decision, followed by a press conference from Governor Michele Bullock. With energy prices climbing amid Middle East tensions, there’s a real chance the RBA leans hawkish, which would offer support to the Australian dollar if the tone matches.
Wednesday is the week’s main event. German inflation data lands in the morning, but the real focus is the US Consumer Price Index later in the day, widely viewed as the single most important release of the week. With last month’s reading running near 2.4% year-over-year, traders will be watching closely for any sign of acceleration that could complicate the more dovish rate-cut path markets have been pricing in since Friday’s weak jobs report.
Thursday stacks several releases: New Zealand inflation expectations, UK second-quarter GDP, and US Producer Price Index data. PPI in particular tends to draw attention as a leading indicator for consumer inflation, meaning it could either reinforce or push back against whatever signal Wednesday’s CPI sends.
Friday closes the week with US Retail Sales and the University of Michigan’s consumer sentiment survey, both offering a read on how resilient American consumers are holding up as the labor market shows signs of cooling.
Taken together, it’s a week where a single mid-week data point, Wednesday’s CPI, has the potential to set the tone for everything that follows, making it the one release worth circling on the calendar above all others.
Disclaimer: The content provided on this page is for informational and educational purposes only and does not constitute financial advice. Trading financial markets involves significant risk. Consult with a certified financial advisor before making any investment decisions.
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