The markets take a breather after the Fed frenzy, but there’s still key data to watch, especially the US PMI and RBA decision. Focus on employment data and any clues on future monetary policy.
Key events:
- US ISM Services PMI (Monday, Feb 5th, 3PM GMT): Expected to rise to 52.0, potentially indicating continued economic growth. Employment index within the report will be closely watched after dipping into contractionary territory last month.
- RBA Rate Decision (Tuesday, Feb 6th, 3:30AM GMT): Widely expected to hold rates at 4.35% for the second consecutive meeting. Traders will scrutinize the Rate Statement, SoMP, and Press Conference for clues about future monetary policy.
- AUD/USD is under pressure and may see further selling this week.
- Last Week:
- Fed meeting: No rate changes, but hinted at potential cuts later.
- Last week’s strong US jobs data solidified expectations for no rate cut in March
Monday:
- Quiet day, but traders watch for news surprises.
Tuesday:
- Asia: Australian Retail Sales, Chinese PMI
- Europe: GDP data for Spain, Germany, France
- US: Consumer Confidence, JOLTS Job Openings
Wednesday:
- Key inflation data: Australian CPI, Chinese Caixin PMI, German CPI
- Fed announcement (rate decision, statement, press conference)
- US: ADP non-Farm payrolls, Employment Cost Index, Canadian GDP
Thursday:
- Asia: Chinese Caixin Manufacturing PMI
- Europe: UK interest rate decision (expected to remain unchanged)
- US: Weekly unemployment claims, ISM Manufacturing PMI
Friday:
- Relatively quiet Asian and European sessions
- US: Core PCE Price Index (key Fed inflation indicator)
Weekend:
- Australian markets closed for Australia Day
Categories: Market News
