The RBA was among the first major central banks to slow down the pace of its hiking. It has raised the benchmark interest rate by 25 basis points at each of its previous 3 meetings. Speculation was growing that the RBA would pause its hiking, but the surprise jump in CPI to 8.4% from 7.3% suggests another 25 bp hike could be on the cards.
What to watch: AUD, Australia 200
UK GDP
Friday, February 10
07:00 GMT
The Bank of England’s dovish 50 basis point hike weighed on the pound, but the central bank now thinks the economic downturn will be milder than previously expected. We will have both the monthly and quarterly GDP prints to provide us a snapshot of the economy, as well as construction output, industrial production and a few other economic indicators.
What to watch: GBP, UK 100
US UoM surveys
Friday, February 10
13:00 GMT
The University of Michigan’s consumer sentiment and inflation expectations surveys have been closely monitored in recent months, as investors have tried to front-run the Fed in anticipating policy changes. The data should move the dollar, gold and stock markets sharply if we see significant deviation from expectations.
