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The Aussie saw serious losses against its counterparts last week. Can the bears sustain the pressure with this week’s potential catalysts?
Quarterly capital expenditure (Feb 27, 12:30 am GMT)
- New capital expenditure slipped by 0.2% in Q3 2019, which is weaker than the 0.0% reading that analysts had expected
- Trump had also signed bills backing Hong Kong’s protesters against China at the time, so fears over China’s retaliation kept high-yielding currencies like AUD under pressure
- Markets see a 0.4% CAPEX increase in Q4 2019
China’s official PMIs (Feb 29, 1:00 am GMT)
- China will print its first official manufacturing and non-manufacturing PMIs since the Coronavirus outbreak in January
- Analysts see the manufacturing PMI plummeting from 50.0 to 45.0
- The non-manufacturing sector could also slip from its 54.1 reading
Market risk appetite
- Coronavirus-related updates will likely continue to influence demand for the export-dependent AUD
- Top-tier events like the U.S.’ second GDP reading and Canada’s GDP release can also affect overall risk taking
- Watch USD’s strength and see if it can continue to drag AUD/USD lower
Technical snapshot
- RSI, Stochastic, Bollinger Bands, and Keltner Channels suggest that AUD is “oversold” against CAD and USD on the daily time frame
- AUD has seen the most volatility against JPY, GBP, CHF, and EUR in the last 30 days
