The Aussie recovered some of its weekly losses last week. Can this week’s catalysts push the comdoll in the green against its major counterparts?
RBA’s meeting minutes (Aug 20, 2:30 am GMT)
The Reserve Bank of Australia (RBA) may have kept its interest rates steady earlier this month following back-to-back rate cuts, but the central bank did not rule out further that “it’s likely to take longer than earlier expected” for inflation to return to its 2.0% target.
Later that week RBA Governor Lowe talked about the economy reaching a “turning point” and did not rule out further easing and even “unconventional” (read: quantitative easing) monetary policies.
This week we’ll see just how worried RBA members are about this “turning point” and how willing they are to making more changes to their policies before the year ends.
Flash PMI reports (Aug 22, 12:00 am GMT)
Data last month showed manufacturing activity expanding at a slower pace in July, as both output and new orders softened and new export decreased for a third month in a row.
Service-oriented businesses didn’t fare much better. The index reading slowed down from 52.6 to 51.9 for the month on the back of weaker new orders and employment trends.Will this week’s numbers confirm a trend of slower expansion?
While there are no top-tier reports scheduled during Australia’s data release, you should note that the Fed is also printing its meeting minutes about five hours before the event. In addition to that, Japan is printing its own manufacturing PMI report in the same trading session.
So, unless we see significant hits or misses that could influence the RBA’s dovish stance, then it’s likely that Australia’s manufacturing and services PMIs would only cause blips in the Aussie’s intraweek price action.