Aussie bulls made pips rain last week. Can they keep the party going this week?
Here are events you should watch out for:
NAB business confidence (Sept 10, 2:30 am GMT)
Last month’s release told us that business confidence kicked higher from 2 to 4 in July even as current conditions dipped a bit.
The report pointed to an improvement in the near term, which helped the Aussie sustain its intraday rallies in the later trading sessions.
While the report doesn’t usually cause sustained price action for the Aussie, it can cause a wiggle or two if we see significant hits or misses in this week’s releases.
However, you should note that NAB’s report is scheduled at the same time as China’s CPI release. Which brings me to my next point…
China’s data releases
Australia doesn’t have a lot of reports on its docket, so the Aussie will likely take its cues from top-tier reports from China.
For newbies out there, know that Australia exports tons of its products to China, so Australia’s economy also kinda depends on China’s economic strength.
After releasing low key disappointing trade balance numbers over the weekend, China will print its CPI and new loans data in the next couple of days.
Analysts see annualized consumer prices slowing down from 2.8% to a 2.6% increase in August. Meanwhile, producer prices are predicted to contract by 0.9% after already seeing a 0.3% decrease in July.
Worse-than-expected numbers mean that the U.S.-China trade war is REALLY starting to bite. Will we see data weak enough to prompt even more intervention from the government?
Missed last week’s price action? Read AUD’s price recap for September 2 – 6!