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Can domestic data continue to prop AUD lower amidst COVID-19 concerns?

Here’s a list of potential catalysts to consider if you’re trading the comdoll!

NAB business sentiment (Mar 10, 12:30 am GMT)

  • Business confidence edged higher (from -2 to -1) in January while business conditions was unchanged (+3) for the month
  • The impact of bushfires remained “moderate” during the survey period
  • Take note that the report will be released just before China prints its CPI numbers

China’s CPI and PPI (Mar 10, 1:30 am GMT)

  • The COVID-19 outbreak, rising pork prices, and Lunar New Year celebrations pushed the annualized consumer prices 5.4% higher in December and January, the highest since October 2011
  • Traders see prices slowing down to 5.2% in February
  • Producer prices could dip by 0.3% after a 0.1% gain in the previous two months

Overall risk appetite

  • With not a lot of top-tier reports from Australia, COVID-19 updates could have more impact on AUD’s price action
  • Top-tier events like the ECB’s policy decision, U.K.’s first post-Brexit budget, and U.S. CPI can also affect AUD’s intraday prices

Technical snapshot

  • Stochastic flags AUD as “oversold” against EUR, JPY, and CHF and “overbought” against CAD on the daily time frame

  • AUD/CHF, AUD/JPY, and AUD/USD are trading below their short AND long-term SMAs
  • EUR/AUD and GBP/AUD are trading above their short AND long-term SMAs
  • AUD/CAD is a hair’s breadth away from having EUR/AUD and GBP/AUD’s conditions


Missed last week’s price action? Read AUD’s price recap for March 2 – 6!