It’s a quieter week forward, a minimum of by way of top-tier financial releases, however listed here are some potential market movers to be careful for.

We’ve received CPI figures from Australia and the eurozone, plus GDP figures additionally from Australia and Canada.

Earlier than all that, ICYMI, I’ve written a fast recap of the market themes that pushed foreign money pairs round final week. Examine it!

And now for the closely-watched potential market movers this week:

Main Financial Occasions:

U.S. sturdy items orders (Feb. 27, 1:30 pm GMT) – This isn’t normally a significant market mover, however the lack of another huge greenback catalysts for essentially the most a part of the week may generate a response from this mid-tier one.

Outcomes are anticipated to come back in combined, with analysts anticipating a 0.1% rebound within the core determine and a 3.7% decline for the headline studying. Nonetheless, stronger than anticipated outcomes might maintain hopes up for extra Fed charge hikes.

Canada’s month-to-month GDP (Feb. 28, 1:30 pm GMT) – This progress determine would spherical up the December quarter, and the Canadian financial system may disappoint with a flat studying for the month.

This comes after a collection of measly 0.1% month-to-month GDP figures, which might add as much as a not-so-stellar This autumn 2022 outcome and remind Loonie merchants that the BOC is about on pausing its tightening cycle quickly.

Australian CPI (Mar. 1, 12:30 am GMT) – Beginning off the brand new buying and selling month is Australia’s quarterly CPI determine, which is slated to point out a slower tempo of worth pressures at 8.1% versus the sooner 8.4% learn.

Weaker than anticipated outcomes might solid doubts on the RBA’s capacity to make a minimum of a pair extra charge hikes of their subsequent coverage conferences.

U.S. ISM PMI readings (Mar. 1 & 3, 3:00 pm GMT) – Uncle Sam shall be releasing one other batch of PMI figures late within the week, this time from ISM. Now these include useful clues for the official NFP report due subsequent week, so be sure you maintain tabs on the roles element!

Eurozone flash CPI (Mar. 2, 10:00 am GMT) – There was lots of chatter from ECB officers on the necessity to maintain mountaineering charges aggressively, so this preview of the area’s inflation figures might help their hawkish views.

Nonetheless, a dip in headline CPI is eyed, because the flash studying might gradual from 8.6% to eight.2% in February whereas the core determine seemingly held regular at 5.3%.

Foreign exchange Setup of the Week: AUD/JPY

AUD/JPY 4-hour Foreign exchange Chart by TradingView

The Land Down Beneath’s quarterly CPI and GDP releases ought to present some volatility for AUD pairs this week!

I’m taking a look at this neat rising wedge on AUD/JPY, because the pair is already right down to the formation’s help space. Are we about to see a break decrease?

A hawkish twist within the RBA’s rhetoric over the previous weeks could have saved the Aussie’s head above water, but it surely seems like market watchers aren’t seeing sufficient information to help the upbeat view.

Ought to inflation and progress figures disappoint this week, we might see a pointy drop for AUD/JPY beneath the wedge help, adopted by a selloff that’s the identical top because the chart sample.

However, upside surprises might reaffirm the view that the RBA can afford to hike a minimum of a pair extra occasions within the coming months.

If that’s the case, AUD/JPY might bounce proper again as much as the highest of the wedge across the 94.00 main psychological resistance. Word that technical indicators are suggesting extra beneficial properties, because the 100 SMA is above the 200 SMA whereas Stochastic is pulling increased from oversold ranges.