Here’s a breakdown of the key economic indicators and how they affect the USD, along with their usual release times, effects on GOLD, AUD/USD, and USD/JPY, and what it means for USD strength or weakness.
Key Economic Indicators and Their Effects on the USD
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Non-Farm Payrolls (NFP)
- Release Time: First Friday of each month, around 15:30 (GMT+3), 20:30 (GMT+8).
- Effect on USD: If the actual NFP figure exceeds the forecast, it suggests strong economic growth, leading to USD strength. Lower-than-expected figures signal economic weakness, weakening the USD.
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Federal Reserve Interest Rate Decision
- Release Time: 8 times a year, around 21:00 (GMT+3), 02:00 (GMT+8).
- Effect on USD: Higher interest rates strengthen the USD, while lower rates weaken it.
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Consumer Price Index (CPI)
- Release Time: Monthly, around 15:30 (GMT+3), 20:30 (GMT+8).
- Effect on USD: Higher-than-expected inflation figures strengthen the USD. Lower inflation weakens it.
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Gross Domestic Product (GDP)
- Release Time: Quarterly, around 15:30 (GMT+3), 20:30 (GMT+8).
- Effect on USD: Better-than-expected GDP strengthens the USD, while weaker GDP causes a decline.
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Retail Sales
- Release Time: Monthly, around 15:30 (GMT+3), 20:30 (GMT+8).
- Effect on USD: High retail sales figures strengthen the USD, while weaker numbers weaken it.
Impact of Actual Results on Price Movements
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Gold (XAU/USD):
- Higher-than-expected data strengthens the USD, causing gold prices to fall (bearish).
- Lower-than-expected data weakens the USD, making gold more expensive (bullish).
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AUD/USD:
- USD Strength: AUD/USD typically falls (bearish).
- USD Weakness: AUD/USD tends to rise (bullish).
-
USD/JPY:
- USD Strength: USD/JPY rises (bullish).
- USD Weakness: USD/JPY falls (bearish).
Explanation of USD Strengthening or Weakening on the Chart
- USD Strengthening: USD/JPY will move up (bullish), and AUD/USD will move down (bearish).
- USD Weakening: USD/JPY will move down (bearish), while AUD/USD will rise (bullish).
