During trading today, Wednesday, April 29, 2020, the financial markets will be interested in the announcement of the economic agenda data, the results of which usually bring about changes in price movements - the economic agenda is a major tool for basic news analysis to predict the performance of the markets. Therefore, caution should be taken until the results of these actual data are known in order to make the right trading decision. Today's economic news are:
The last update of the Coronavirus: The number of American COVID-19 cases has risen to more than one million, according to data collected from Johns Hopkins University. The data indicate that at least 57,266 Americans have died of the disease. The number of global cases is now 3.09 million, and 213,824 deaths. Despite the lack of a vaccine to end the disease, global economies intend to reopen and abandon closure policy imposed on the world to contain the rapid spread of the Coronavirus. Health experts' warnings are harsh because the second wave of the disease outbreak with the reopening and millions of people taking to the streets, factories and companies will be more violent than the current figures.
Australian Consumer Price Index: In Australia, the inflation rate increased by 0.7% on a quarterly basis in the last quarter of 2019 after recording a 0.5% increase in the previous period. The quarterly reading came in above analysts' expectations for a 0.6 percent rise. This was the highest inflation rate to date since the September quarter of 2016. The high inflation rate was driven by higher tobacco prices, local holidays, travel, accommodation costs; auto fuel prices; and fruit prices. Predictions for the first quarter of 2020: inflation of 0.2 percent.
Average CPI: In Australia, the improved CPI increased by 0.4% quarter-on-quarter in the December quarter of last year. Predictions for the first quarter of 2020: inflation of 0.3 percent.
US GDP growth rate: The US economy saw 2.1% growth in the fourth quarter of last year, the same rate it recorded in the third quarter. The reading corresponded to the second estimate. The increase in personal consumption expenditures was offset by the downward revision of investment and non-residential fixed spending by the federal government. For the whole of 2019, the US economy has grown by 2.3 percent, at least since 2016, but it missed the Trump administration's goal of 3.0 percent for the second year. Predictions for the first quarter of 2020: -3.9 percent growth.
US FOMC Statement: Generally, the FOMC makes slight changes to the statement during each release. Investors and markets are focusing on these changes. The committee uses the statement as a tool to communicate with investors regarding monetary policy. The statement contains the result of the members ’voting on interest rates and various other policy measures. It also contains a comment on the economic conditions that influenced their decision. More importantly, it provides the country's economic outlook and evidence for future decisions.
The press conference of the Governor of the US Central Bank: Jerome Powell, President of the Federal Reserve, holds a press conference 30 minutes after the announcement of the interest rate. The press conference lasts for an hour and consists of two parts. In the first part, he well read a prepared statement in advance. In the second part, he answers the questions asked by the press. Since the questions often lead to unwritten answers, large fluctuations in the market, especially for the US dollar, can be expected against the other major currencies.