No high interest rates? No problem! Can Aussie bulls keep the bears at bay for another week this week?
Business confidence and job ads (Oct 8, 12:30 am GMT)
Data printed last month showed both business confidence and conditions declining in August, with both indices clocking in below their longer-term averages.
The disappointing report helped drag the Aussie to its intraday lows.
Meanwhile, ANZ’s job advertisements – a leading indicator of the labor market – showed a 2.8% drop in August after two consecutive months of increases.
Luckily for the bulls, traders were more interested in pricing in Chinese data printed during the same trading session.
While these reports don’t usually dictate the Aussie’s intraweek trends, they can cause intraday blips that can support underlying economic themes moving the comdoll. Make sure you stick around during the releases to take advantage of intraday opportunities that might pop up!
Home loans (Oct 10, 12:30 am GMT)
Lending to households and businesses shot up by 5.0% in July, which was better than the 0.8% dip seen in June. Since analysts had not expected an upturn until August, the reported growth rate helped lift the Aussie higher across the board.
Market geeks see a 3.6% home loans growth for the month of August. With no other top-tier data on the docket, the Aussie’s intraday price action could have a direct correlation to the report’s upside or downside surprises.
Overall risk sentiment
One of the biggest market themes this week is the set of meetings between U.S. and Chinese trade reps.
Word around is that the Trump administration could work on a limited deal that would mark the first phase of a longer-term negotiation. China, on the other hand, might be interested in talking about a specific range of topics that might not be on the U.S.’ priorities.
Markets have learned to pare their expectations on negotiations like this, but keep your eyes glued to the tube (or on Twitter) in case we see updates that might affect the comdolls’ price action!
Missed last week’s price action? Read AUD’s price recap for Sept. 30 – Oct. 4!