US CPI report release is already behind us and markets' attention once again shifts towards central banks with release of the FOMC minutes and an expected 50 bp rate hike from RBNZ. Apart from that, investors' attention will also be drawn to retail sales data from the US as well as inflation figures from Canada. Be sure to watch GOLD, AUDNZD and USDCAD next week!
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Gold tested the $1,800 resistance area last week, underpinned by a sharp retreat in the dollar following the release of lower-than-expected US inflation numbers for July. Nevertheless FED members indicated their commitment to keep raising interest rates until they see compelling evidence that inflation sustainably declines. Therefore, FOMC minutes released on Wednesday, 7:00 pm BST is a key macro report for gold traders next week, as it may provide more insights regarding the central bank's stance on monetary policy.
The Reserve Bank of New Zealand is set to review its monetary policy settings on Wednesday. Markets expect a 50 bps rate hike, however investors will mostly focus on comments regarding the future path of rates for the RBNZ. House prices in New Zealand fell in July as high inflation and rising interest rates weighed on demand. Recent data also showed that near-term inflation expectations in the country are forecasted to slow in the third quarter of 2022. Therefore some analysts expect that the pace of interest rates hikes may slow down in the upcoming months. On Tuesday investors will be served RBA Minutes which may also boost volatility on AUDNZD.
FOMC minutes on Wednesday is not the only release which may have impact on the US dollar. USDCAD currency pair is likely to remain active next week as two important macro reports are set to be released - US retail sales report for July (Wednesday, 1:30 pm BST) and Canadian CPI report for July (Tuesday, 1:30 pm BST). Data should provide more information regarding price pressures in both economies.