Highlights
At 2:30 p.m. AEST Tuesday (0030 EDT/0430 GMT), the Reserve Bank of Australia will announce its policy decision. The bank is expected to raise its main policy rate, the cash rate, by 25 basis points to 4.35% amid easing but still high inflation. Some forecasters expect no change. At its July 4 meeting, the RBA left the rate 4.10 percent, as largely expected, after unexpectedly raising the rate by 25 basis points in June. But the bank indicated that its battle against stubbornly high inflation is not yet over as Australia's consumer inflation remains well above the bank's medium-term inflation target of between 2 and 3 percent.
In Germany, the unemployment rate is expected to hold steady at 5.7 percent in July after edging up to a two-year high in June from 5.6 percent in May. The German economy showed now growth in the April-June quarter after contracting in the previous two quarters.
The unemployment rate in the Eurozone is also forecast to be unchanged, at 6.5 percent in June. The regional economy posted a higher-than-expected 0.3 percent on quarter in April-June after being flat in the previous three-month period, but remains sluggish overall.
US manufacturing activity is expected to stay in contraction territory for the ninth straight month in July amid uncertainty over the timing of recovery in demand but the sector index compiled by the ISM is forecast to rise to 46.5 after dipping 0.9 point to 46.0 in Jun, when firms prepared to lower production and used more layoffs to manage head counts.
Construction spending in the US is expected to rise a further 0.6 percent on the month in June following May's 0.9 percent increase that benefited from a sharp jump in residential spending.
The Labor Department's JOLTS report on job openings is forecast to show further easing to 9.650 million in June versus May's 9.824 million, which was near expectations and pointed once again to still strong but slowing demand for labor.
In New Zealand, employment is expected to rise a quarterly 0.5 percent in the second quarter following a better-than-expected 0.8 percent rise in the first quarter. The unemployment rate is expected to edge higher to 3.5 from 3.4 percent.
Inflationary pressures in South Korea are expected to ease further in July, reflecting credit tightening by the Bank of Korea. The year-over-year increase in the consumer price index is forecast to be slowing to 2.5 percent after moderating to a 21-month low of 2.7 percent in June from 3.3 percent in May. It would be still above the bank's 2 percent target.
In Germany, the unemployment rate is expected to hold steady at 5.7 percent in July after edging up to a two-year high in June from 5.6 percent in May. The German economy showed now growth in the April-June quarter after contracting in the previous two quarters.
The unemployment rate in the Eurozone is also forecast to be unchanged, at 6.5 percent in June. The regional economy posted a higher-than-expected 0.3 percent on quarter in April-June after being flat in the previous three-month period, but remains sluggish overall.
US manufacturing activity is expected to stay in contraction territory for the ninth straight month in July amid uncertainty over the timing of recovery in demand but the sector index compiled by the ISM is forecast to rise to 46.5 after dipping 0.9 point to 46.0 in Jun, when firms prepared to lower production and used more layoffs to manage head counts.
Construction spending in the US is expected to rise a further 0.6 percent on the month in June following May's 0.9 percent increase that benefited from a sharp jump in residential spending.
The Labor Department's JOLTS report on job openings is forecast to show further easing to 9.650 million in June versus May's 9.824 million, which was near expectations and pointed once again to still strong but slowing demand for labor.
In New Zealand, employment is expected to rise a quarterly 0.5 percent in the second quarter following a better-than-expected 0.8 percent rise in the first quarter. The unemployment rate is expected to edge higher to 3.5 from 3.4 percent.
Inflationary pressures in South Korea are expected to ease further in July, reflecting credit tightening by the Bank of Korea. The year-over-year increase in the consumer price index is forecast to be slowing to 2.5 percent after moderating to a 21-month low of 2.7 percent in June from 3.3 percent in May. It would be still above the bank's 2 percent target.
Definition
Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.
Description
Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.
