Week Ahead: RBA’s next move is in the spotlight

February 5, 2024

In the dynamic landscape of the global economy, investors and analysts remain vigilant, focusing on pivotal events to decipher the trajectory and well-being of diverse economies. Let’s delve into the significant economic indicators and upcoming decisions slated for February 2024.

US ISM Services PMI (5 February 2024)

Following an unexpected dip to 50.6 in December 2023, the US ISM Services Purchasing Managers’ Index (PMI) reflected its lowest point in seven months. Analysts are eyeing the January 2024 data, set to be unveiled on 5 February 2024, with expectations of a rebound to 52.0. This release will serve as a crucial gauge of the US services sector’s health and its potential repercussions on the broader economy.

Reserve Bank of Australia Rate Decision (6 February 2024)

Having maintained cash rates at 4.35% in its final 2023 meeting, the Reserve Bank of Australia (RBA) is anticipated to uphold current interest rate levels on 6 February 2024. This decision will offer valuable insights into the central bank’s monetary policy stance and its evaluation of economic conditions in Australia.

New Zealand Quarterly Employment Change (7 February 2024)

After experiencing a 0.2% decline in Q3 2023, following a 1% surge in the preceding quarter, New Zealand’s employment landscape is under scrutiny. Analysts eagerly await the release of Q4 2023 employment data on 7 February 2024, anticipating a further decrease of 0.3%. This report will highlight trends in New Zealand’s labour market, providing crucial information for economic forecasts.

Canada Employment Change (9 February 2024)

With employment in Canada edging up by 0.1K in December 2023, subsequent to a noteworthy 24.9K rise in November, the focus now shifts to the January 2024 employment data, expected on 9 February 2024. Analysts are predicting a decrease of 5K jobs, offering insights into the resilience of the Canadian labour market and its adaptability to economic conditions.