Risk appetite and positive jobs data pulled the Aussie from its lows last week. Which catalysts can affect the comdoll this week?
Flash PMI reports (Oct 23, 10:00 pm GMT)
Markit’s data printed last month showed the manufacturing industry slipping into contractionary territory in September, with production, new orders, and exports falling and companies reducing employment for the first time since May.
The service sector looked better with its jump from 49.1 to an index reading of 52.5 for the month. Apparently, higher new orders and better business confidence contributed to the increase.
Luckily for Aussie bulls, the contraction in the manufacturing industry was shrugged off in favor of the strength of the services sector.
Will we see another mixed release this time? More importantly, how long can Aussie bulls and bears maintain their intraday momentum before other economic updates kick in?
Market risk appetite
With not a lot of top-tier reports scheduled from Australia and China, traders will likely trade the Aussie as a high-yielding comdoll. That is, they could buy on positive global market updates and sell when they’re not comfortable holding higher-yielding bets.
This week all eyes will be on how U.K. Prime Minister Boris Johnson will react to last Saturday’s vote.
If you recall, U.K. MPs have voted to delay their decision to support any trade deal until all legislation needed to implement its terms have been placed. Under the Benn Act, BoJo must now request a three-month Brexit delay.
On the other side of the world, Chinese Vice-Premier Liu He celebrated the “substantial progress” that both sides have made since last week’s negotiations. More importantly, Liu He has hinted that we could see a trade deal as early as the summit in Chile on November 16 to 17 where both Trump and Xi Jinping are scheduled to attend.
These market themes could dictate the comdolls’ intraweek trends, so make sure you stay glued to the tube so you don’t miss any market-moving updates!
Missed last week’s price action? Read AUD’s price recap for Oct. 14 – 18!