Finally, it looks like the boring period is over as the investors are back from holidays and we have some really high impact economic events on the docket. For instance, we got RBA (Reserve Bank of Australia) cash rate, UK’s inflation report hearing and, last but not the least, ISM manufacturing from the US. Here’s what we can expect…

Watchlist – Key Economic Events Today

AUD – Monetary Policy Decision
Cash Rate – At 5:30 (GMT) the RBA (Reserve Bank of Australia) will be releasing the interest rate. Although the Australian economy is doing well, the RBA is highly expected to keep the rates on hold at 1.50%. That’s because the central bank is concerned about growing household debt. Whereas, the wages are not rising as quickly as expected.

RBA Rate Statement – Since the rate isn’t expected to change, the investor focus switches to RBA rate statement. The rate statement will be worth watching for any future guidance. The monetary policy statement is among the primary tools the RBA Reserve Bank Board utilizes to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it discusses the economic outlook and offers clues on the outcome of future decisions.

GBP – Inflation Report Hearings
At 13:15, the Governor and the MPC (Monitory Policy Committee) are gonna testify on the inflation report before the parliament. The hearings are a few hours in length and can create market volatility for the duration. Especially noted are the direct comments made about the currency markets. Let us recall, the UK’s inflation rate is still in the range. All we need is to see what they are expecting in the future. Hawkish remarks are gonna give a boost to the Pound.

USD – ISM Manufacturing PMI
At 15:00, the Institute for Supply Management is expected to release the manufacturing purchasing managers index. The forecast of 57.6 still represents robust growth, but weaker than the previous figure of 58.1. Apart from the headline, it is important to note the price component. The Fed watches inflationary pressures.