1. Thursday- Australian Employment change @1:30am
2. Thursday- GBP Interest Rate Statement @ 12:00am
3. Thursday- US Core Inflation Rate (M/M) @1:30pm
4. Friday- US Retail Sales @ 1:30pm
AUSTRALIAN EMPLOYMENT CHANGE: The Australian employment report is scheduled to be release on Thursday. The employment report which is expected to have increased by 15k in the previous month and an unemployment rate at 5.4%. The ongoing trade uncertainty has also been weighing on the Australian dollar and there could be more downside pressure for the currency should data from China point to a hit to the economy from the US tariffs. A better than expected employment data could help boost the Australian Dollar higher as a strengthening labor market should ultimately deliver better pay growth in the future while if the outcome is worse than expected Aussie will depreciate.
GBP INTEREST RATE STATEMENT: The Bank of England raised interest rates by 0.25% at their August meeting but they are not expected to raise rate in September. The Bank of England responded to rising inflation but despite a unanimous vote to move rates, Governor Mark Carney and his colleagues remain hesitant given the high level of uncertainty originating from Brexit. Brexit uncertainty remains a key risk factor preventing them from going ahead - unless a deal is struck by Thursday, which seems a little unlikely even under the most optimistic scenarios. Should the rate remain unchanged, the market will be focusing on the accompany statement as a Dovish statement will weaken the pound while a hawkish statement will strengthen the Pound.
US CORE INFLATION RATE: The United States will release its core inflation rate report on Thursday. The CPI is expected to be a key report as it shapes Federal Reserve policy response and a higher reading makes it more likely the Fed will continue to aggressively hike rates.The core rate is forecast to stay unchanged at 2.4%. Although, the Fed doesn’t pay too much attention to CPI inflation, it’s still considered a good indicator of inflationary pressures in the US economy. A worse than expected CPI should see USD weakens while a better than expected CPI should see USD strengthens temporarily.
US RETAIL SALES: The US Retail Sales is scheduled to be release on Friday. As the release will have a huge effect on the Us Dollar. Retail sales are estimated to have expanded at a healthy pace in August, by 0.4% m/m, moderating slightly from the prior 0.5%.