After seeing heavy losses last week, can Aussie bulls use this week’s catalysts to get some pips in?
Australia won’t be printing any notable economic data in the next few days, but these catalysts could influence the comdoll’s price action:
RBA Lowe’s speech (Sept 24, 9:55 am GMT)
The biggest possible mover in Australia’s economic calendar is Reserve Bank of Australia (RBA) Governor Philip Lowe giving a speech titled “An Economic Update” in New South Wales.
Interest rate junkies are especially excited to see the event as many predict Lowe will use his speech to set the stage for another rate cut in October 1.
Analysts point to last week’s weak jobs data (RBA loves watching labor market numbers) and a lack of reference to July’s rate cut in its September statement as clues that the central bank might be gearing up for more stimulus.
If Lowe does hint at further rate cuts, then we could see the Aussie extend its losses from last week.
Countercurrency price action and overall risk sentiment
A weaker than expected labor market data, dollar strength, and U.S.-China trade related concerns dragged the Aussie closer to its late August/ early September lows last week.
Will market themes improve enough for the bulls to get a few pips in?
Updates on the upcoming meetings between U.S. and Chinese reps could take center stage again next week. Recall that the Aussie dropped across the board when word got around that Trump is unwilling to discuss a partial trade deal, which may have prompted Chinese officials to cancel their goodwill visits to farms in Montana and Nebraska.
Brexit-related updates could also affect demand for high-yielding currencies like the Aussie. This week the U.K. Supreme Court is expected to decide on whether Prime Minister Boris Johnson acted lawfully when he suspended Parliament. Increased uncertainty over Brexit could weigh on demand for the comdolls.