21stNovember 2023
Tuesday
Tuesday, November 21, 2023, ispoised to be a pivotal day for financial markets with multiple keyannouncements scheduled. Australia will release the Monetary Policy MeetingMinutes, shedding light on its economic strategy. In parallel, Canada is set toannounce its Consumer Price Index (CPI), a critical measure of inflation.Additionally, the United States will disclose the Minutes from the Federal OpenMarket Committee (FOMC) meeting, offering insights into its monetary policydecisions.
AUD - MonetaryPolicy Meeting Minutes
For traders, the detailed account of the Reserve Bank of Australia (RBA) Board's most recent meeting is invaluable, as it provides comprehensive insights into the economic considerations that guided their decisions on interest rate levels.
The upcoming Reserve Bank of Australia (RBA) Monetary Policy Meeting Minutes on November 21, 2023, are anticipated to cover a range of topics, including an analysis of the Australian economy's current state, with a focus on inflation and growth prospects, risks and challenges, and an evaluation of the effectiveness of the RBA's monetary policies. The minutes are expected to shed light on the impact of recent interest rate hikes, the outlook for inflation, and potential further policy tightening, while also addressing the RBA's approach to global economic uncertainties, such as the war in Ukraine and rising living costs. As these minutes provide insights rather than definite policy commitments, they are keenly awaited by investors and businesses for indications of potential future interest rate adjustments by the RBA.
The upcoming Monetary Policy Meeting Minutes are scheduled for November 21, 2023, at 12:30 AM GMT.
The last time, the Australian Monetary PolicyMeeting Minutes was announced on the 17th of October, 2023.You may find the market reaction graph
(AUDNZD M5) below:CAD – CPI m/m
Inflation, primarily driven by consumer prices, plays a significant role in currency valuation, as escalating prices compel central banks to increase interest rates in adherence to their mandate of inflation containment.
In September 2023, Canada's Consumer Price Index saw a 0.10% decline from the previous month, deviating from the historical average of 0.29% observed since 1950. Notably, the index reached its peak at 2.60% in January 1991 and hit a record low of -1.30% in June 1959.
The upcoming CPI m/m forecast anticipates a modest rise to 0.2%, rebounding from the previous figure of -0.1%, suggesting a potential shift in economic momentum.
The last time, Canadian CPI m/m wasannounced on 17th of October, 2023. You may see the marketreaction graph (CADJPY M5) below:CAD - MedianCPI y/y
In the realm of economic trends, consumer prices form a substantial portion of overall inflation, a factor that significantly influences currency valuation. This is primarily because when prices rise, central banks are often prompted to hike interest rates, a strategic move aimed at fulfilling their commitment to controlling inflation.
In a recent update, September 2023 saw Canada's Consumer Price Index (CPI) Median climb by 3.8% year-on-year, marking a modest slowdown from the 4.1% increase recorded in August and falling below the market expectation of a 4% rise. The CPI Median, a key indicator for evaluating core inflation trends, indicates a slight easing in the rate of price growth, hinting at a moderation in inflationary pressures.
The latest forecast for the CPIy/y Median suggests a slight decrease to 3.5% from the previous announcement of 3.8%, signaling a moderate easing in inflation trends.
CAD - TrimmedCPI y/y
Consumer prices constitute a major portion of total inflation, which is a critical factor in determining the value of a currency, as increasing prices typically prompt central banks to elevate interest rates in line with their commitment to controlling inflation.
In September 2023, Canada's Trimmed-Mean Consumer Price Index experienced a year-over-year increase of 3.7%, slightly down from the 3.9% rise in August and marginally below the market forecast of 3.8%.
The projected forecast for the CPITrimmed-y/y basis shows a decline to 3.4%, down from the previous result of 3.7%, indicating a subtle but notable shift in inflation dynamics.
The upcoming release of the CPI m/m, MedianCPI y/y, and Consumer Price Index (CPI) is scheduled for Tuesday,November 21, 2023, at 1:30 PM GMT.
