Increased risk appetite pushed the Aussie near the top of the forex heap last week. Check out this week’s catalysts too see if it can maintain its uptrends!
Lower-tier economic releases
- AIG manufacturing index (Mar 31, 9:30 pm GMT) dropped from 45.4 to 44.3 in February
- RBA’s meeting minutes (Apr 1, 12:30 am GMT) could provide more clues on the central bank’s other stimulus options
- Building approvals (Apr 1, 12:30 am GMT) could shoot up by 4.5% in February
- AIG construction index (Apr 2, 9:30 pm GMT) inched up from 41.2 to 42.7 in February
China’s PMIs
- As one of the first economies to somewhat recover from COVID-19, the first activity indicators for China will be closely watched by market players
- Manufacturing PMI (Mar 31, 1:00 am GMT) is expected to pop up from 35.7 to 44.9 in March
- Non-manufacturing PMI (Mar 31, 1:00 am GMT) could shoot up from 29.6 to 42.1
- Caixin manufacturing PMI (Apr 1, 1:45 am GMT) might jump from 40.3 to 45.0 in March
- Caixin’s services PMI (Apr 3, 1:45 am GMT) is seen at 39.6 after dipping to 26.5
Overall risk appetite
- Government responses and market players’ worries over the impact of COVID-19 will continue to affect demand for high-yielding comdolls like the Aussie
- Top-tier reports like Uncle Sam’s NFP-related releases and PMI reports from major economies can also cause intraday volatility for AUD
Technical snapshot
- Unless the tides change for AUD, it will end the month in the red against ALL of its major counterparts
- AUD has seen the most losses against EUR, CHF, and JPY in the last 30 days
- AUD has been the most volatile against USD, JPY, and CAD in the last seven days
- AUD is now trading above the 5 EMA against CHF, JPY, NZD, and EUR even as it remains below its 20, 50, and 200 EMAs
- AUD/CAD and AUD/USD are now trading above their 5 and 20 EMAs. Watch out for retracements and reversal opportunities!
- GBP/AUD remains bullish across the short and long-term EMAs
Missed last week’s price action? Read AUD’s price recap for March 23 – 27!
