US Update: Week ahead: Elections, rate decisions and jobs take center stage

Next week’s calendar gives traders plenty to work with.

US congressional elections bring political uncertainty, the Reserve Bank of Australia and Bank of England are expected to raise rates, and Friday delivers employment reports from both the US and Canada.The central question is whether growth, inflation and employment support a more restrictive policy outlook.

For traders, the releases will provide the catalysts.

The technical levels will help define the bias, risk and targets as those headlines hit.Monday, November 2: US manufacturing and the RBA decisionThe week starts with US manufacturing before attention shifts to Australia late in the North American evening.10:00 AM ET – US ISM Manufacturing PMI – Forecast: 54.7 – Previous: 54.5.10:30 PM ET – RBA cash rate decision – Forecast: 4.85% – Previous: 4.60%.10:30 PM ET – RBA Monetary Policy Statement and Rate Statement.11:30 PM ET – RBA press conference.The manufacturing index is expected to edge higher, remaining above the 50 level that separates expansion from contraction.

Traders will also watch prices paid, new orders and employment for clues about inflation pressure and the durability of growth.For the AUDUSD, the calendar points to a 25-basis-point RBA hike.

The reaction will depend on the guidance as well as the decision.

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