Today there are numerous important economic events which can move the forex market, from a few speeches in the European session, to the housing market of the US economy, crude oil stocks change, the unemployment rate in Australia and industrial production for Japan. Moderate to high volatility should be expected for the AUD/USD pair.
These are the main economic events in the forex market today to focus on:
European Session
- Bundesbank Weidmann Speech, ECB Coeure Speech
Time: 08:00 GMT, 14:30 GMT
The central bank official’s speeches have the potential to move the forex market and in this case the Euro, as they can provide new updated information and statements on economic conditions and monetary policy potential changes.
American Session
- US Building Permits, Housing Starts, Philadelphia Fed Manufacturing Index, EIA Crude Oil Stocks Change and Gasoline Stocks Change
Time: 13:30 GMT, 16:00 GMT
Philadelphia Fed Manufacturing Index rates general business conditions in the city of Philadelphia. Higher than expected or rising readings for the Philadelphia Fed Manufacturing Index signal expansion and increased economic and business activity, improving conditions and are positive and supportive for the US Dollar. Same applies for higher readings of the housing starts and building permits, which indicate a robust housing market and increased consumer confidence about the state of the economy.
The forecasts are for declines for the Philadelphia Fed Manufacturing Index and the growth rate of housing starts and building permits, which may affect negatively the US Dollar. The Crude Oil Stocks Change is a weekly report about the inventories of crude oil, and it is released by the Energy Information Administration. Usually it is hard to predict the actual outcome and there is often significant positive or negative surprises, which lead to volatile price action. If there is an increase of the crude oil inventories, which is more than the expectation, then there is weak demand for oil, and this should be interpreted as negative for the oil prices.
Pacific Session
- Australia Unemployment Rate, Employment Change, New Zealand Business Manufacturing PMI
Time: 00:30 GMT, 21:30 GMT
Lower than expected or declining unemployment rate signals a robust economy and is supportive for the local currency indicating strong economic growth. The forecast is for an unchanged unemployment rate of 5.4% for Australia and a lower growth rate of positive employment change, which can be considered neutral for the Australian Dollar. However any surprise, either positive or negative related to the actual unemployment rate could move the Australian Dollar. The New Zealand Manufacturing Purchase Manager’s Index records business conditions in the manufacturing sector, which accounts for the overall economic sector. Increasing figures signal industry expansion and are supportive and positive for the New Zealand Dollar.
Asian Session
- Japan Industrial Production
Time: 04:30 GMT
The industrial production index is an economic indicator that tracks the output change of the industrial sector each month versus the previous month. Higher than expected or rising figures indicate expansion for the industrial sector and are positive for the Japanese economy and the Yen. The forecast is for a marginal increase on a monthly basis with a figure of 0.6%, higher than the previous figure of 0.5%.
