The RBA is expected to cut rates on Tuesday, while the US CPI report could influence Fed policy expectations in the face of Trump’s tariffs. Investors will be observing whether the United States and China extend a 90-day tariff truce. Trump plans to meet Russian President Vladimir Putin in Alaska in an effort to secure a deal to end the war in Ukraine.
Event Watchlist:
AUDUSD
The Reserve Bank of Australia is expected to cut interest rates by 25 basis points on Tuesday. So, investors will be seeking clues about future policy moves. Should the RBA signal further cuts in 2025, this may weigh on the AUDUSD – opening a path toward 0.6450. A hawkish-sounding RBA may push the currency pair toward 0.6560.
USDInd
The USDInd could see heightened levels of volatility if the incoming US CPI report influences Fed cut bets. A 90-day trade truce between the US and China expires on Tuesday. Without an extension, the US could reimpose 145% tariffs on Chinese goods, and Beijing might reinstate its 125% duties on US goods.
GBPUSD
After the BoE rate cut in August, traders are pricing in a 50% probability of another rate cut by November. The latest UK GDP and industrial production figures are likely to influence these bets, ultimately impacting the GBPUSD. Prices are turning bullish on the daily charts with key levels of interest at the 50-day SMA, 1.3450 and 100-day SMA.
Here’s a detailed list of other key economic data and events due this week:
Monday, 11th August
Tuesday, 12th August
Wednesday, 13th August
Thursday, 14th August
Friday, 15th August
