Australia is printing its labor market numbers this week! Here’s a list of the catalysts that can move the Aussie in the next few days.
China’s data dump (May 15, 3:00 pm GMT)
On Wednesday the world’s second-largest economy will print its industrial production, retail sales, and fixed asset investment numbers for the month of March.
Traders will likely pay attention to this week’s numbers especially after the U.S. has just upped its tariffs on China’s goods last week.
Significantly worse-than-expected results could drag on commodity-related currencies like the Aussie and Kiwi as they suggest that their major export market is already in a bad position BEFORE the additional tariffs kick in.
Labor market reports (May 16, 2:30 am GMT)
The economy added a net of 25,700 jobs in March, much higher than the 15,200 figure that analysts had expected. A closer look told us that full-time employment rose by 48,300 while part-time jobs fell by 22,600 during the month.
The unemployment also edged higher from 4.9% to 5.0% as expected, thanks in part to the labor force participation rate inching 0.1% to 65.7%. Last but not the least is the underemployment rate, which rose by 0.1% to 8.2%.
This week traders expect the economy to add a net of 15,000 jobs in April. The unemployment rate, on the other hand, is expected to stay at 5.0% as the Reserve Bank of Australia (RBA) had warned.
Thinking of trading this report? Make sure to keep an eye out for deets like underemployment, working hours, and wages!
See, while the RBA has kept its rates steady last week, it also made clear that it’s expecting better labor market numbers to pick up the slack and boost inflation some time in the foreseeable future.
If this week’s numbers widely miss expectations, then we could see the Aussie trade lower against its counterparts.
Missed last week’s price action? Read AUD’s price recap for May 6 – 10!