No major data release this week, which means the Aussie will likely take cues from risk sentiment and countercurrency price action.
RBA officials’ speeches
Governor Philip Lowe and RBA Assistant Governor Michele Bullock are set to take center stage this week.
Lowe is currently giving the Aussie a short-term boost after sharing his concerns over the effectiveness of global monetary easing.
He said that if everyone is easing, then the impact on the exchange rates might just be offset. This is a bit of departure from the meeting minutes where we learned that members think that “it was more likely than not that a further easing in monetary policy would be appropriate in the period ahead.”
Will Bullock echo the misgivings tomorrow at 8:05 am GMT? She’s set to give a speech titled “Modernising the Australian Payments System” in Berlin but watch out for hints of her two cents on the RBA’s interest rate plans!
After a “very good telephone conversation” last week, Trump shared that he and China’s Xi will have an “extended meeting” at the summit this week.
At the very least, traders will be looking for a de-escalation of the tariff war between the U.S. and China. A legit trade deal would still be more awesome, though.
Aside from the direct impact of more/less tariffs between the world’s two largest economies, this week’s meetings will also affect the tone of major central bankers all over the world.
Remember that a lot of the dovish ones have cited global trade concerns as a reason for their bias changes.
Significant improvements in the U.S.-China negotiations will go a long way at delaying further easing, so make sure you keep your eyes peeled for any tradeable announcement!
Missed last week’s price action? Read AUD’s price recap for June 17 – 21!