Australia is taking a break from top-tier releases. That doesn’t mean we won’t see volatility for the Aussie, though!
Here are potential catalysts you should watch out for:
Lower-tier economic data
While reports in this week’s lineup might not see reactions similar to last week’s CPI data, they could inspire intraday spikes that could make or break the Aussie’s intraweek trends.
AIG’s manufacturing index (May 1, 11:30 pm GMT) is expected to maintain its 51.0 reading for the month of April, while its services counterpart (May 2, 11:30 pm GMT) could also steady at 50.5 during the period.
Meanwhile, monthly building approvals is expected to drop by 12.5% in March after a 19.1% gain in February. Traders already factor in the report’s tendency to print volatile growth rates but keep an eye out in case this week’s release is particularly strong or weak.
China is also printing PMI reports this week. Since Australia exports tons of its product to the world’s second-largest economy, you can bet that Aussie traders will pay attention to the official manufacturing and services PMIs on Tuesday and the Caixin version on Thursday.
Top-tier releases from other major economies
With not a lot of data from Australia, traders will likely take cues from other market themes for the Aussie’s intraweek trends.
Aside from China, the U.K., euro zone, and the U.S. will also print their PMI reports. Since investors are worried over slowdown in global demand, traders like to pay close attention to PMIs for confirmation of potential production and services trends.
Major central banks like the Fed and Bank of England (BOE) are also scheduled to publish their monthly decisions this week. Analysts aren’t expecting changes but stay glued to the tube in case their statements hint at actionable policies in the foreseeable future!
And then there’s the NFP reports, which tends to affect dollar and sometimes even Aussie demand. Check yo forex calendars to see which related reports could see potential volatility!
Missed last week’s price action? Read AUD’s price recap for April 22 – 26!