Australia is printing its retail sales and trade data this week! What can you expect from the events? Read on for your mini trading guides!
Trade balance (Jan. 8, 12:30 am GMT)
The Land Down Under printed a trade surplus of 2.32B AUD in October, narrower than the 2.94B AUD surplus we saw in September and below estimates of a 3.2B AUD reading.
Both imports (+3.2%) and exports (+1.3%) were less-than-impressive for the month and didn’t really point to a strong finish for the year. As a result, the Aussie took some hits during the session.
This week, analysts are seeing the trade surplus a pinch higher to 2.33B AUD in November. Any significant weakness in the deets might make a dent on the Aussie’s newfound strength, so watch them numbers closely!
Retail sales (Jan. 11, 12:30 am GMT)
Retail activity accelerated by 0.3% in October, which is in line with market expectations and a bit better than the downwardly revised 0.1% growth in September.
Traders weren’t too impressed, however. See, retail sales only make up a third of GDP consumption.
Not a lot of market geeks also expect to see momentum hold as the effects of the Black Friday and Cyber Monday (both relatively new events in Australia) promotions slowly dissipate.
For now, traders expect to see another 0.3% growth in November. Stronger-than-expected numbers could provide a catalyst for the Aussie’s extended bull run, so make sure you stick around for the release!
U.S.-China trade talks
All eyes will be on the mid-level talks between the U.S. and Chinese representatives happening in Beijing this January 7 and 8.
While analysts don’t see anything significant happening in the sixth round of negotiations, they also welcome any progress made ahead of the 90-day trade truce deadline due in March.
Deputy US trade representative Jeffrey Gerrish will lead the American delegation and is expected to hold “proactive and constructive talks” to add more details to agreements reached between Trump and Xi Jinping in the G20 summit in Argentina last month.
Will last week’s weaker-than-expected Chinese data make their reps more agreeable to the U.S.’ demands this time around?