Macroeconomic Calendar – FOMC Minutes in Focus

The macroeconomic calendar for the coming day is relatively light, yet a few key events warrant attention. The most significant will be the publication of the minutes from the latest FOMC meeting. At that meeting, the Federal Reserve opted to hold interest rates steady, emphasising the limited scope for imminent rate cuts. However, recent remarks from Chair Powell have suggested that rate reductions remain a possibility later this year, with September emerging as the most probable start date.

Earlier today, China's inflation rate rose to a positive 0.1% year-on-year, marking the first such increase since March. Conversely, Producer Price Index (PPI) inflation experienced a sharper decline into negative territory, indicating that disinflationary pressures persist. The Reserve Bank of New Zealand (RBNZ) maintained its interest rates, though the New Zealand Dollar (NZD) is currently being sold off against the Australian Dollar (AUD).

Today's Calendar (London Time):

• 11:45 AM: EMU – Speech by ECB Chief Economist Lane

• 1:15 PM: Germany – Speech by Bundesbank's Nagel

• 3:00 PM: USA – US Wholesale Inventories for May (Forecast: -0.3% m/m; Previous: 0.2% m/m)

• 3:30 PM: USA – US Crude Oil Inventories by DOE (Forecast: -2.6M barrels; API Reading: +7.13M barrels)

• 7:00 PM: USA – FOMC Minutes

AUDNZD continues a strong rebound, despite RBNZ kept interest rates unchanged, similarly to the RBA. Source: xStation5