Investing.com – Here’s a preview of the top 3 things that could rock markets tomorrow
It’s interest rate decision day in Canada
Nearly two-months after the Bank of Canada (BoC) rose interest rates for the first time in seven months, the central bank releases its decision on interest rates on Wednesday, widely expected to remain unchanged at 0.75%.
Investors will parse the accompanying policy statement from the BoC for clues into the central banks thinking on the economy and monetary policy outlook.
The outlook of Canada’s economy remains solid, after gross domestic product grew at an annualized rate of 4.5% in the second quarter, the highest figure in almost 6 years.
USD/CAD traded at C$1.2378, down 0.29%.
Aussie macro data in the spotlight
The Aussie dollar will be under the spotlight in Wednesday’s session as traders look ahead to a duo of reports on the progress of Australia’s economy.
The pace of retail sales for July is expected to remain steady at 0.3% unchanged from the prior month while the trade balance is expected to widen to 0.875 billion from 0.856 billion in June.
Ahead of the duo of reports, AUD/USD tacked on 0.63% to $0.7995.
US services data on tap
The Institute of Supply Management (ISM) releases its Non-Manufacturing Purchasing Managers' Index (PMI) (also known as the ISM Services PMI) report on Tuesday. Economists’ forecasts a slight improvement on July’s reading of 53.9.
The services sector is critical component of the US economy, accounting for roughly 80% of U.S. private-sector gross domestic product (GDP).
The greenback has come under pressure against its rivals as safe haven currencies like the yen and Swiss franc continue to garner demand among investors, following an uptick in geopolitical uncertainty in the Korean peninsula.
The ISM report will be followed by the Federal Reserve’s Beige Book which is expected to provide further details on the health of the U.S. economy ahead of the Federal Open Market Committee (FOMC) meeting slated for September 20.