Last week featured a number of important announcements from both sides of the Atlantic. The United States announced its interest rate decision, as well as its unemployment and nonfarm payroll data. Meanwhile, the EU also had an interest rate decision, which saw the ECB cut the rate from 0.75% as expected. This caused a massive drop in the EUR/USD, which fell to 1.305 hours after the announcement.
Meanwhile, this week is a fairly quiet one, with interest rate decisions coming from Australia and the UK later in the week. Here are some of the most important events of this week, May 6-10:
Event: Interest Rate Decision – Australia
Date: May 7, 2013
Time: 4:30am (GMT)
What It Is About and Why It’s Important
After a series of rate cuts last year totaling to 75bps, the Reserve Bank of Australia (RBA) has yet to announce a new round of cuts for this year. Analysts do not expect cuts at least until the middle of the year. Even the RBA has not provided any indication that it has any plans to do so in the near future.
Event: Consumer Price Index (YoY, Apr) – China
Date: May 9, 2013
Time: 1:30am (GMT)
What It Is About and Why It’s Important
China’s CPI has remained fairly stable over the past six months, staying approximately around 2%. February 2013 figures, however, spiked up to 3.20%, although it has since dropped to 2.1% in March.
Event: Unemployment Rate (Apr) – Australia
Date: May 9, 2013
Time: 1:30am (GMT)
What It Is About and Why It’s Important
Australia’s March unemployment rate is at 5.60%, 0.20% higher than the previous month’s numbers. This is the highest figure in three years. Aside from that, the unemployment rate has shown a slow, but somewhat steady rise over the past 12 months. April 2012 unemployment rate was at 5%, which then rose and then moved around 5.30-5.40%.
At the same time, the Australian Bureau of Statistics will announce the country’s unemployment change numbers. Although the number spiked to 74k in February from January’s 13k, it has dropped in March to just 36.1k.
Event: Interest Rate Decision – UK
Date: May 9, 2013
Time: 11:00am (GMT)
What It Is About and Why It’s Important
Unlike the ECB, the Bank of England (BoE) is not expected to make any changes to its interest rate, which is currently at 0.5%. The rate has remained flat since it fell by 4.5% in just 7 months from late 2008 to early 2009.
Event: Unemployment Rate (Apr) – Canada
Date: May 10, 2013
Time: 12:30pm (GMT)
What It Is About and Why It’s Important
After a steady drop from 7.40% in October 2012 to just 7% in January and February, Canada’s unemployment rate rose to 7.20% in March. This is expected to remain as is in April.
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