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The last week of June saw markets fight back from their losses earlier in the period as all of the major benchmarks rose by 5% on the week. This solid gain came thanks to declining fears over a Greek default and solid manufacturing data in the U.S. This led many to buy equities on the dip, leading to gains for all the major indexes for the week, helping to erase the negative memories that started June and allowing the second half of the year to start on a bullish note. Additionally, markets were encouraged that QE2 ended without a hitch; although bond yields have been steadily rising in anticipation of this event, the pace of the gains has been moderate, suggesting that given the solid economic data, maybe the economy can hold its own without further quantitative easing after all.

Thanks to the start of a new quarter and Independence Day in the U.S., this week is light on data once again, especially on the earnings front. No major companies look to give their updates over the next few days but there are a select number of key data points that investors should keep their eyes on during the week. Chief among them are the numerous central banks which are scheduled to give their decisions on interest rates over the next few days. Most importantly are the Reserve Bank of Australia, the ECB, and the BOE, which all set rates for some of the world’s largest and most important economies. Beyond these, some smaller economies look to also give their decisions on rates including Sweden and Mexico. In terms of data, investors will likely hone in on Wednesday’s ISM non-manufacturing data, GDP reports from New Zealand, and the unemployment situation in the U.S. on Friday. At time of writing, the consensus called for a 0.1% drop in the unemployment rate down to 9.0%. If this happens, it could push equities to two solid Friday sessions in a row and make investors forget about both debt in the euro zone and continued concerns over the American inability to raise the debt ceiling, something that could turn into a huge issue by the end of the month if it is not resolved. With this backdrop, investors should look for the following three ETFs to be in for an active week:

Rydex CurrencyShares Australian Dollar Trust (NYSEARCA:FXA)

Why FXA Will Be In Focus: When commodity prices were booming, Australia was one of the strongest developed market economies in the world and was among the first to raise rates from the group of industrialized nations. Yet, now as commodity prices have moderated or in some cases plunged, it remains to be seen how the country’s central bank will react to this changing market environment when it meets later this week to discuss rates. All economists in a recent survey expect the Reserve Bank of Australia to keep rates on hold at this week’s meeting at the current level of 4.75%. With that being said, six of ten believe a 25 basis point hike is in the cards by the end of the quarter while all predict that a rate hike will take place by the end of the year. Inflation remains moderate but at the high end of the spectrum so any comments regarding this and growth prospects are likely to weigh on the RBA’s policy statement, potentially signalling when the bank is looking to raise rates. If it appears as though Australia will see a hike sooner rather than later, FXA could recoup some of its recent losses against the greenback and turn in a solid week to start the third quarter.

iShares MSCI New Zealand Investable Market Index Fund (NYSEARCA:ENZL)

Why ENZL Will Be In Focus: Much like its larger counterpart in Australia, New Zealand started off the year on solid footing but stumbled in the last few weeks thanks to risk aversion and lower commodity prices. While the country doesn’t have a central bank meeting this week, it is releasing its most recent figures regarding GDP growth. Quarter-over-quarter readings for the nation’s GDP expect the rate of growth to rise to 0.3% from 0.2% last quarter, although the year-over-year estimates indicate a slump from 0.8% growth to 0.5%. If these figures turn out to be the actual growth numbers for New Zealand, it will probably suggest to many that the country is having a difficult time growing after the devastating earthquakes that struck Christchurch earlier this year as growth is down from the year ago period–pre-quake– and only up slightly compared to the first quarter when the tremor took place. As a result, investors will likely key in on ENZL as a proxy for the country’s recovery so look for the ETF to be on the move after the announcement of the GDP results later this week.

iShares MSCI Italy Index Fund (NYSEARCA:EWI)

Why EWI Will Be In Focus: Although the Greek crisis may have been averted for the time being, investors are likely to pay close attention to the Italian market nonetheless in the days and weeks ahead. The country’s Aa2 sovereign credit rating has been put under review for a possible downgrade by Moody’s and similar concerns are beginning to crop up among a number of the country’s key banks as well. This sentiment is backed up by a report from S&P which said that there was roughly a one-in-three chance that the ratings giant would lower the country’s A+ rating within the next two years, casting further doubt over the Italian economy. Thanks to these worries, any further warnings from debt ratings agencies or other crises springing up in the region over the next few days could have an outsized impact on this ETF. EWI has gained close to 6.2% over the past week so it appears as though the nation has been able to avoid the brunt of the crisis for now, but as we have seen in Greece, sentiment and expectations can change in an instant, suggesting that investors could see a volatile week ahead for this iShares fund.

Disclosure: Long ENZL.

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Source: 3 ETFs to Watch This Week: Aussie Dollar, New Zealand, Italy