Monetary Policy meeting in Australia

The Reserve Bank of Australia will be holding its monetary policy meeting this week.

Investors expect to see no changes to the interest rates.

The RBA’s interest rates stand at 1.5%. The central bank was seen holding rates steady for the past few years as it struggles to stoke inflation.

The central bank remains pinning its hopes on wage growth which is expected to boost consumer prices eventually.

US PMI Reports

A busy week for the USD. Economic data over the week will cover some important tier one data.

The Institute of Supply Management will be releasing its manufacturing and non-manufacturing PMI reports this week.

Expectations are for the index to ease after it surged strongly in August.

The data however is expected to show that activity in both manufacturing and services are rising robustly during September.

US NFP report

The U.S. non-farm payrolls report will be coming out this Friday.

The data comes after the ADP reports the private payrolls figures. Economists polled expect the private payrolls to rise 184.5k for September.

This comes after private payrolls rose 163k in August.

The official payrolls data is expected to show that the U.S. economy added 188k jobs for September.

This marks a slower pace of jobs added following a 201k increase the month before.

The U.S. unemployment rate is forecast to fall to 3.8% from 3.9% previously.

The Fed is forecasting the unemployment rate to settle at 3.6% by year’s end.

Wage growth, which is another important factor, is expected to rise 0.3% on the month following a 0.4% increase previously.

Eurozone PMI Reports

Data from the Eurozone will see the release of the monthly PMI figures covering the manufacturing and services sector from Markit.

Economic activity in the region is expected to remain fairly stable.

This will also give first insights into how the Eurozone’s economy advanced during the third quarter of the year