The week ahead will see the continuation of the central bank decisions with the focus turning to the RBA and the RBNZ. Both the central banks are expected to remain on the sidelines however as no rate hikes are expected this week. Economic data from the US is expected to remain on the back foot following a rather busy trading week.

China will also be releasing the monthly inflation figures this week which is expected to show a modest increase from the previous month. Producer prices index is, however, expected to slow down following last month’s stronger increase.

Economic data from the Eurozone this week will be focused mostly on second-tier data which includes industrial and construction output and services PMI data. The Eurozone Sentix investor confidence data will also be coming out which is expected to increase strongly.

Here’s a quick recap into this week’s economic calendar for the currency markets.

RBNZ expected to remain on the sidelines

The Reserve Bank of New Zealand will be holding its monetary policy meeting on late Wednesday. The data comes following Monday’s inflation expectations data for the quarter which is expected to play a role. However, the central bank is not expected to hike rates at this week’s meeting although last quarter’s employment report came out stronger than expected.

Inflation data was also encouraging as the latest reports released two weeks ago showed that headline consumer prices in New Zealand rose 0.5% on the quarter ending September. This pushed the annual inflation rate to 1.9%.

Investors will be looking for any statements from the RBNZ amid the change of government in New Zealand. The Kiwi dollar fell sharply after the newly formed Labor party government took charge with the help of the NZ First Party. The government was quick to announce that it was planning to overhaul the RBNZ’s mandate which could most likely include the full employment mandate besides the inflation target.

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