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RBA’s Lowe will be giving a speech this week. Can he influence AUD’s intraweek trends this week?
Here are economic themes and potential catalysts you should pay attention to in the next couple of days:
RBA’s meeting minutes (Apr 21, 1:30 am GMT)
- The Reserve Bank of Australia (RBA) last met in April 7, when members kept interest rates unchanged at 0.25%
- Governor Lowe will be giving a speech after the meeting minutes release, which could hint at the central bank’s immediate plans and biases
Flash PMIs (Apr 22, 11:00 pm GMT)
- Manufacturing fell by its fastest rate on record in March, though output increased as manufacturers filled in China’s production gap
- Services dropped from 49.0 to 38.5 in March as COVID-19 took its toll on the service sector
- AUD still shot up across the board thanks to RBA pumping more money into the economy
Overall risk appetite
- High-yielding currencies like the Aussie tend to have a direct correlation with risk-taking
- Aussie traders will continue to focus on coronavirus-related updates and policy changes to gauge global demand trends
- Here’s what governments and central banks in major economies have done so far since the coronavirus pandemic hit
- Not a lot of top-tier reports are scheduled, so PMI reports from the euro zone and U.K.’s retail data can get extra attention
Technical snapshot
- Stochastic notes AUD’s overbought conditions against almost all of its major counterparts
- The Aussie is still trading below the 200 SMA against most majors
- Watch out for potential bullish trends against CHF, EUR, GBP, CAD, and NZD
- AUD had been most volatile against USD, JPY, CHF, and EUR in the last seven days
Missed last week’s price action? Read AUD’s price recap for April 13 – 17!
