The Week Ahead:
Markets are likely to remain quiet on Monday, almost all banks are closed for the Easter Monday holiday and there are no scheduled data events. On Tuesday, Canada will publish Wholesale Sales data for March, followed by the US Existing Home Sales release at 14:00 GMT.
Wednesday will be the busiest day of the week in terms of economic data. The first event will be inflation data out of Australia at 02:30 GMT, expected at 0.8 % QoQ and 3.2 % Year-on-Year. Higher than expected CPI data could help revive upside momentum in the AUD/USD and pave the way for a push towards the 0.95 level. 15 minutes later, Chinese HSBC Manufacturing PMI data will be published. During the European session, there will be a series of Manufacturing & Services PMI releases, starting with French and followed by German and Euro Zone data. In the US session, the focus will be on Canadian Retail Sales and US New Home Sales data. At 22:00, the RBNZ will decide on interest rates, followed by a press conference. The bank is expected to hike rates from 2.75 % to 3.00 %. Traders will be paying close attention to the language of the Governor at the press conference and whether the current NZD exchange rate levels will be mentioned.
On Thursday, the highlight of the European session will be German IFO data, which is an indicator of current business sentiment. A 110.5 print is expected vs. 110.7 in the previous month. US traders will be focusing on Durable Goods Orders and Initial Jobless Claims data at 13:30 GMT.
Australian and New Zealand markets are closed on Friday for the ANZAC holiday. During the Asian session, Japan will release March CPI data. The key event of the day will be UK Retail Sales at 09:30 GMT, expected at -0.4 % MoM and 3.8 % YoY. Later in the day, we have the Michigan Consumer Sentiment print, with the median forecast being 83.0 (vs. 82.6 previously).
Good luck trading!