Australia is printing its labor market data this week! Think it will push the Aussie higher against its counterparts this week?
RBA’s meeting minutes (Mar. 19, 12:30 am GMT)
As expected, the Reserve Bank of Australia (RBA) kept its policies steady for a 28th month in a row earlier this month.
What analysts didn’t count on was Governor Lowe and his team maintaining their upbeat assessment on the economy, choosing to give it the benefit of the doubt despite evidence of weaknesses in house prices, consumer sentiment, wage growth, and the construction sector.
Instead, Lowe highlighted the rise in business investment; public spending on infrastructure, and overall improvements in the labor market.
Let’s see just how confident RBA members are when they publish their meeting minutes this week. Are rates still as likely to move higher than lower, or are central bank members favoring a side this time?
Labor market data (Mar. 21, 12:30 am GMT)
The Australian economy added a net of 39,100 jobs in January, which was way more than the 17,000 uptick that analysts had expected. What’s more, the unemployment rate held at a seven-year low of 5.0%!
Unfortunately for the Aussie, bearish catalysts such as the Westpac bank cutting its growth forecasts and reports that China will cut its Australian coal imports quota rained on the comdoll’s parade in last month’s trading session.
This week, analysts expect to see a net of 15,000 workers getting jobs in February while the unemployment rate (5.0%) and the labor force participation rate (65.7%) are expected to maintain their current rates.
Australia’s jobs data is the only top-tier report scheduled during the trading session (Japanese markets are out on a banking holiday though), so it’s likely that the report will dictate the Aussie’s price action until the next trading session.
Don’t even think of missing this event!
Overall risk sentiment
With not a lot of top-tier events filling up Australia’s calendar, it’s likely that the Aussie will once again take cues from its counterparts for direction.
This week major central banks like the Fed, European Central Bank (ECB), and the Swiss National Bank (SNB) are scheduled to print their monetary policy decisions. Meanwhile, the U.K., U.S., Canada, and the EU are scheduled to release top-tier reports that could move market sentiment.
And then there’s the Brexit updates. We already know that British policymakers don’t want a no-deal Brexit, and are open to extending the deadline. Question is, will they take PM Theresa May’s deal over an extension?
Missed last week’s price action? Read AUD’s price recap for March 11 – 15!