In the upcoming week, there are several key economic events taking place across various countries. On Monday, the Eurozone Unemployment Rate is expected to remain unchanged at 6.4%. Despite a tight labor market, central banks are hoping for a softening of unemployment rates to boost confidence in achieving inflation targets. Additionally, the US ISM Manufacturing PMI is anticipated to rise slightly to 47.7, indicating stagnation in activity.
On Tuesday, the Reserve Bank of Australia (RBA) is expected to maintain the cash rate at 4.10%. The RBA is cautious about the labor market, which has been mostly lackluster with a majority of part-time job additions. Furthermore, the US Job Openings report for August is highly anticipated after a significant miss in the previous month.
Moving to Wednesday, the Reserve Bank of New Zealand (RBNZ) is expected to keep the Official Cash Rate steady at 5.50%. The central bank remains confident that inflation will return to target levels with current interest rates. Additionally, the US ADP report, which focuses on the labor market, is expected to show 160,000 jobs added in September. Lastly, the US ISM Services PMI is forecasted to slightly decrease to 53.6, indicating contracting demand and reduced activity.
Thursday brings the US Jobless Claims data, which continues to be a crucial labor market indicator. Despite expectations, recent data suggests a solid job market. Finally, Friday sees the release of Japan’s wage data, which is important for the Bank of Japan (BoJ) as they strive for sustainable inflation targets. Additionally, the US Non-Farm Payrolls (NFP) report is expected to show 163,000 job additions, accompanied by a decrease in the Unemployment Rate to 3.7%. The Average Hourly Earnings will also be closely watched for any changes.
Overall, these upcoming events will provide insights into the labor markets across various countries and their impact on inflation targets and economic growth.