After a surprise rate hike by the Reserve Bank of Australia (RBA), the spotlight will fall on the Bank of Canada (BoC) on Wednesday. The central bank is expected to keep rates steady, while Friday’s Canadian jobs data could generate fresh volatility in USDCAD. Australian GDP growth figures may challenge AUDUSD earlier on Wednesday. Meanwhile in commodity markets, oil prices could not sustain OPEC-led gains.
USD/CAD–> BoC rate decision
The BoC will review its rate policy on Wednesday at 14:00 GMT. Although it pledged to keep rates steady, policymakers seem to witness pressure to resume monetary tightening. An unexpected rate increase or a hawkish hold could drive USDCAD towards the key floor of 1.3340. Friday’s jobs data could affect rate expectations if the central bank does not send a clear message about its next actions. Investors foresee a milder employment growth of 23.2k in May versus April’s 41.4k and a marginal increase in the unemployment rate to 5.1%.
AUD/USD–> Australian GDP growth
The RBA’s quarter percentage rate hike caught everyone by surprise during Tuesday’s Asian session, extending AUDUSD’s recovery up to its 200-day SMA. GDP growth figures for the first quarter are the next highlight on the calendar due on Wednesday at 01:30 GMT. Forecasts are for a slowdown to 2.4% y/y from 2.7% previously, though the unexpected rate increase has rather signaled that inflation remains a top priority.
WTI oil futures –> OPEC supply cuts
Saudi Arabia decided to cut production by an extra 1 million bpd during the past weekend, while other OPEC members extended their previous supply cuts by 12 months. WTI oil futures cheered the news, but gains proved short-lived, bringing the 68.35-64.00 zone back into view.
After a surprise rate hike by the Reserve Bank of Australia (RBA), the spotlight will fall on the Bank of Canada (BoC) on Wednesday. The central bank is expected to keep rates steady, while Friday’s Canadian jobs data could generate fresh volatility in USDCAD. Australian GDP growth figures may challenge AUDUSD earlier on Wednesday. Meanwhile in commodity markets, oil prices could not sustain OPEC-led gains.
USD/CAD–> BoC rate decision
The BoC will review its rate policy on Wednesday at 14:00 GMT. Although it pledged to keep rates steady, policymakers seem to witness pressure to resume monetary tightening. An unexpected rate increase or a hawkish hold could drive USDCAD towards the key floor of 1.3340. Friday’s jobs data could affect rate expectations if the central bank does not send a clear message about its next actions. Investors foresee a milder employment growth of 23.2k in May versus April’s 41.4k and a marginal increase in the unemployment rate to 5.1%.
AUD/USD–> Australian GDP growth
The RBA’s quarter percentage rate hike caught everyone by surprise during Tuesday’s Asian session, extending AUDUSD’s recovery up to its 200-day SMA. GDP growth figures for the first quarter are the next highlight on the calendar due on Wednesday at 01:30 GMT. Forecasts are for a slowdown to 2.4% y/y from 2.7% previously, though the unexpected rate increase has rather signaled that inflation remains a top priority.
WTI oil futures –> OPEC supply cuts
Saudi Arabia decided to cut production by an extra 1 million bpd during the past weekend, while other OPEC members extended their previous supply cuts by 12 months. WTI oil futures cheered the news, but gains proved short-lived, bringing the 68.35-64.00 zone back into view.
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