A pretty light data week for Australia, which only has PMIs and Lowe’s speech on tap. Here’s what you can expect from the events.
Flash PMI reports (Jul 24, 12:00 am GMT)
In last month’s release we saw Australia’s manufacturing PMI post its highest reading in three months in June.
The jump in new orders was the most notable, though the improvement in employment and job creation also gave bulls good vibes.
Meanwhile, the services PMI “rose solidly” for the month, as sharp increase in new business pushed the index higher.
Not surprisingly, Aussie bulls attacked at the release of the better-than-expected PMI figures.
Will we see better index figures this week? Recall that last week’s RBA meeting minutes revealed that members are still ready to cut rates further “if needed.”
If this week’s numbers print way lower than analysts had expected, then the Aussie could lose some of its shine from the previous week.
Governor Lowe’s speech (Jul 25, 4:05 am GMT)
How close is the Reserve Bank of Australia (RBA) to cutting its rates again?
On Wednesday night Governor Lowe is scheduled to give a speech titled “Inflation Targeting and Economic Welfare” in Sydney.
While non-official speeches like these don’t usually move the markets for long, Australia doesn’t have a lot going for it data-wise this week. This means traders could pay more attention than usual to what the RBA head honcho has to say.
Will he hint at the central bank’s potential responses to other central banks implementing easier policies? Or will Lowe just address his latest photo-op fail?
Keep your eyes glued to the tube!
Missed last week’s price action? Read AUD’s price recap for July 15 – 19!