Today is expected to be saturated with many macroeconomic reports. The day began with the publication of data on New Zealand's GDP, which grew by 0.5% in Q2, slightly exceeding investors' expectations. There was also data published on employment in Australia. As it became known, unemployment rose in August by 0.1%, thereby motivating the RBA to reduce the rate to change situation on the labor market. The impressive growth of jobs in August, by 34 thousand, was achieved thanks to part-time jobs, and therefore, lower wages.
Today, the Bank of Japan left the rate unchanged, although it noted the growth of external negative factors for the Japanese economy. However, investors positively assessed this decision and the yen strengthened against major currencies.
In Britain, investors expect a meeting of the Bank of England, which will consider reducing the rate. It is expected that the regulator will not change it in the face of uncertainty and will wait until the next meeting, when it will become clear how Britain will leave the EU and on what terms. Meanwhile, retail sales growth is slowing to 2.7%, falling short of forecasts.
In the afternoon, data on production activity in the US is expected, as well as reports on the real estate market. The US dollar was under pressure yesterday, given the FED's decision to cut the rate to 2%. However, now it can count on support thanks to possible positive data on the US economy.
