ASX is set for an early selloff this Monday morning following Wall Street triggered by expectations that the Federal Reserve will accelerate its pace of interest rate hikes this year. An unexpected 2.9% increase in inflation in US wages as reported in the January payroll report. On Friday we saw the result of the US Non-farm Employment rosed to 200,000 while the market was only expecting an increase of 181,000 jobs created. AUDUSD traded lower at the US $0.7911 cents on the back of a stronger USD.
Investors will be looking for further direction from the Retail Sales numbers due out in Australia on Tuesday and on the Cash Rate, the market is expecting the RBA to put interest rate on hold.
DATA RELEASES THIS WEEK:
GBP – Services PMI
USD – ISM Non-Manufacturing PMI
EUR – ECB President Draghi Speaks
AUD – Retail Sales, Cash Rate & RBA Rate Statement
CAD – Trade Balance
NZD – Employment Change q/q & Unemployment Rate
USD – Crude Oil Inventories
NZD – Official Cash Rate, RBNZ Monetary Policy Statement & RBNZ Rate Statement
AUD – RBA Gov Lowe Speaks
GBP BOE Inflation Report, MPC Official Bank Rate Votes, Monetary Policy Summary & Official Bank Rate
AUD – RBA Monetary Policy Statement
GBP – Manufacturing Production m/m
CAD – Employment Change & Unemployment Rate