Not a lot of top-tier news from Australia this week, but it doesn’t mean that we won’t see volatility.
I’ve listed the economic themes that you have to pay attention to.
Check it out!
RBA’s meeting minutes (May 19, 1:30 am GMT)
- The Reserve Bank of Australia (RBA) maintained its interest rates at 0.25% as expected in May
- RBA members see GDP at 6% in 2020, with unemployment rate remaining at 7.5% through 2021
- While they won’t dictate intraweek trends, we could see a blip or two during their releases
- Conference Board’s leading index (May 19, 2:30 pm GMT) printed at -0.4% in February
- Melbourne Institute’s leading index (May 20, 12:30 am GMT) worsened from -0.4% to -0.8% in March
Markit’s PMIs (May 20, 11:00 pm GMT)
- Manufacturing PMI worsened from 49.7 to 44.1 in April
- Services, which was hit “a lot harder” than manufacturing, plummeted from 38.5 to 19.6 in April
Overall risk sentiment
- As a “high-yielding” bet, the Aussie can benefit from risk-friendly trading environment
- PMI reports from other major economies (U.S., Euro Zone, U.K., Japan) are expected to mirror China’s “recovery” after easing lockdown measures
- Updates on reopening of major economies can continue to provide support for risk-taking
- Headlines on the escalating U.S.-China trade war can keep traders from buying AUD this week
- RSI is flagging AUD’s “overbought” conditions against NZD on the daily time frame
- AUD is on bullish trends against GBP, NZD, and CAD
- Watch out for retracements or reversals on AUD/USD and AUD/JPY’s daily charts
- AUD was most volatile against JPY, USD, CHF, and EUR in the last seven days
Missed last week’s price action? Read AUD’s price recap for May 11 – 15!