Review of economic calendar for this week 07.08-11.08

The U.S dollar has been dominating against most of its major rivals from the very starting of this week. Though there is no high impact news scheduled on this Monday prior to the closing of the last week, the dollar bulls gained extensive bullish strength after the strong data release in the U.S labor force. Such a significant impact in the U.S labor force might help to take the decision of another rate hike in the U.S economy.

On Tuesday we have Consumer Credit m/m data release for the green bucks. The dollar bulls will get fresh buying pressure if the data comes out positive. The professional investors are expecting a decent volatility in the AUD/USD pair and the recent bearish correction will come to an end if the actual data of the NAB Business Confidence meets the expectation of the Aussie economist. The low yielding Japanese Yen is trading higher against most of its major rivals but the future of this pair greatly depends on the 30-y Bond Auction data. But the impact of this data is not going to affect forex market immediately rather we the investors will consider it as price driving catalyst for near future.

From Wednesday we will experience a decent level of market volatility due to the major news release in the energy field. Though the price of oil is relatively stable due to the OPEC production cap limit yet the investors are in doubt due to excessive oil production from Iraq. With a rise in the Crude Oil Inventories, we will see a sharp drop in the price of oil but a decrease in the supply line will boost the price of oil significantly higher. This will eventually push the USD/CAD pair lower in the global market.

Thursday is very important for the Kiwi dollars. Though the NZD/USD pair has breached the 200 SMA in the weekly chart the bears have taken control over the market after the positive U.S force data release. If RBNZ comes up with a hawkish statement than all the bearish in the Kiwi dollar will be wiped out. But we must also look at the official cash rate and RBNZ press conference to get an overall idea of the strength of Kiwi economy. We also have Manufacturing Production m/m data release for the Great Britain economy. The last week vote from the Britain’s MPC officials suggests that the data will be bad. On New York trading session we have an unemployment claim data release for the U.S economy and this factor is going to play a key role for the third rate hike in the U.S.

On Friday RBA Governor Lowe will speak regarding the current performance of their economy. The surging AUD/USD pair is under bearish retracement due to positive gain in the U.S labor force but the bearish retracement might come to an end with a hawkish speech from Lowe.
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