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Week Ahead: Markets to Focus on RBNZ Rate Statement and US Retail Sales

August 14, 2023

Important economic events will have a significant impact on the forex market this week. Keep an eye out for the Reserve Bank of New Zealand’s (RBNZ) Rate Statement and the US data for retail sales. This information could greatly influence the markets, so it’s crucial for traders to be cautious and stay on top of the latest developments for a successful week of trading.

Here are some notable highlights for the week:

Australia Wage Price Index (15 August 2023) 

The seasonally adjusted Wage Price Index in Australia showed that wages increased by 3.7% year-on-year in Q1 2023, following a year-on-year growth of 3.4% in Q4 2022. 

Data for Q2 2023 is scheduled for release on 15 August, with analysts anticipating another increase of 3.8%.

Canada Consumer Price Index (15 August 2023) 

Canada’s Consumer Price Index (CPI) increased by 0.1% in June 2023 compared to the previous month. 

Analysts anticipate a 0.2% increase in the figures for July, which are set to be released on 15 August.

US Retail Sales (15 August 2023)

Retail sales in the US rose by 0.2% month-on-month in June 2023, following a 0.5% increase in May. 

Analysts expect a 0.3% growth in the figures for July, scheduled for release on 15 August.

UK Consumer Price Index (16 August 2023) 

Consumer price inflation in the UK dropped to 7.9% in June 2023, marking the lowest level since March 2022. 

The upcoming CPI figures are expected to show a further decline to 7.4%.

Reserve Bank of New Zealand Rate Statement (16 August 2023) 

During its July meeting, the Reserve Bank of New Zealand maintained the official cash rate (OCR) at 5.5%.

Analysts predict that the RBNZ will keep the OCR unchanged at 5.5% following its upcoming meeting on 16 August.

Federal Funds Rate (17 August 2023) 

The Federal Reserve raised the target range for the federal funds rate by 25 bps to 5.25–5.5%, in line with market expectations. 

Additionally, the central bank also resumed its tightening campaign after a pause in June.

Employment in Australia (17 August 2023) 

Employment in Australia surged by 32,600 in June 2023. Meanwhile, the unemployment rate stood at 3.5%, remaining unchanged from May. It continues to hover close to the 50-year lows reached in October 2022.

Analysts anticipate that employment figures for July 2023 will show an increase of 25,100, with the data scheduled for release on 17 August.