Positive risk sentiment propped the Aussie higher last week.
Let’s see if any of this week’s catalysts can threaten the uptrend!
Here’s a list of themes you should know about:
Quarterly CAPEX (May 28, 1:30 am GMT)
- Capital expenditure worsened from -0.4% to -2.8% in Q4 2019, which highlighted the need for more RBA stimulus
- The weak release didn’t stop the Aussie from an intraday uptrend
- Markets see capex falling by another 1.0% in Q1 2020
Overall risk sentiment
- Coronavirus updates (vaccine, local and global stimulus, reopening of economies) will continue to affect Aussie’s intraweek trends
- Headlines on the U.S.-China tensions can also make or break Aussie’s trends
- Other top-tier releases (U.S. GDP, Powell’s speech) may affect intraday prices of high-yielding currencies like the Aussie
Technical snapshot
- Stochastic is flagging AUD’s “overbought” conditions against JPY, CHF, GBP, and CAD on the daily time frame
- Aussie is still on bullish trends against its major counterparts, though we can see retracements or reversals on AUD/JPY, AUD/USD, and AUD/CHF
- AUD was most volatile against JPY, USD, CHF, and GBP in the last seven days
Missed last week’s price action? Read AUD’s price recap for May 18 – 22!
