Giles Coghlan LLB, Lth, MA
Financial Source
On Monday, the ISM Services PMI is particularly important since the services sector accounts for 70% of the US GDP. A significant miss in this data could signal dollar weakness and increase the likelihood of interest rate cuts. Additionally, the RBA interest rate decision is crucial, especially given the rising inflation and tight labor market in Australia. If the Reserve Bank of Australia hints at potential interest rate hikes, it could boost the Australian and New Zealand dollars.
Tuesday brings New Zealand labor data, which, while important for the New Zealand dollar, may not be a major market mover unless there's a substantial miss. Wednesday and Thursday are expected to be quiet with no major economic events.
Friday's Canadian labor data will be significant for the Bank of Canada. A weak labor market could increase the chances of further interest rate cuts to alleviate pressure on mortgage holders.
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