Labor market data in focus for the US, and rate decision in focus for Australia

This week, we will have two key events coming up. The first is nonfarm payrolls from the US, and the second is RBA’s rate decision in Australia. The US economy is still missing about 4 million jobs to reach the full recovery. If everything goes well, the labor market is expected to reach such a stage by the end of this year. Previously, the Fed has conveyed a stance that is more dovish than expected, which has created the biggest weekly loss since May for USD. Elsewhere, the labor market data are also in focus. In New Zealand, employment data will be the last major data point before RBZA meets in mid-August.

This week, RBA will meet on Tuesday and is expected to abandon its plan to trim asset purchases due to the threat of the Delta variant. Previously, RBA expected the economy to accelerate and have signaled some change in the monetary policy. But unfortunately, much of Australia is back in lockdown as of now.