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Not a lot of top-tier releases from Australia today, which means Aussie traders will likely look to risk sentiment for direction.

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Check out the potential catalysts that might influence the comdoll’s price action this week:

Flash Markit PMIs (June 22, 11:00 pm GMT)

  • Manufacturing inched up from 42.8 to 44.1, while services PMI improved from 19.5 to 25.5 in April
  • A parade of data misses from Australia and Japan-inspired risk aversion during the trading session
  • Japan’s PMIs will also be printed in the same trading session this week, so watch out for a more general mood instead of a direct reaction to the headline numbers

PBoC’s loan prime rate (June 22, Asian session)

  • People’s Bank of China (PBoC)’s will be printing its monthly loan prime rate – a pricing reference for bank lending – some time on Monday’s Asian session
  • Significant changes will tell markets that (a) PBoC thinks the economy is weaker than expected and will need more stimulus or (b) PBoC will be aggressive in stimulating the economy
  • The 1-year rate could be cut from 3.85% to 3.80%
  • The 5-year rate is seen maintaining its 4.65% rate

Overall risk sentiment

  • The lack of top-tier domestic reports will focus Aussie traders’ attention on risk appetite in the markets
  • Coronavirus cases in major economies like the U.S. and China and potential policy (lockdown) measures will affect risk-taking
  • Vaccine and pandemic-related stimulus updates can boost high-yielding currencies like the Aussie
  • U.S.-China or China-Australia trade headlines can also influence demand for the Aussie

Technical snapshot

  • Stochastic is flagging AUD/JPY’s “oversold” conditions
  • AUD may soon be “overbought” against GBP on the daily time frame
AUD Forex Pairs Stochastic from MarketMilk
AUD Forex Pairs Stochastic from MarketMilk
  • The Aussie is still on bullish trends against most of its major counterparts
  • AUD/CHF just dipped back below the 200 SMA on the daily time frame
  • AUD/NZD is now trading below its 50 SMA though it’s still above its 200 SMA
AUD Forex Pairs SMAs from MarketMilk
AUD Forex Pairs SMAs from MarketMilk
  • AUD was most volatile against the yen, dollar, and pound in the last seven days
AUD Forex Pairs Volatility from MarketMilk
AUD Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read AUD’s price recap for June 15 – 19!