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The RBA is up this week!
Will the central bank end the Aussie’s rallies?
Check out this week’s potential catalysts for the Aussie!
RBA statement (July 7, 4:30 am GMT)
- The Reserve Bank of Australia (RBA) kept its interest rates at 0.25% as expected in June
- RBA also hinted that the economic downturn was “less than earlier expected”
- RBA’s optimism, combined with the reopening of economies across the globe propped AUD higher
- Analysts aren’t expecting policy changes from the central bank this week
- Watch out for cautiousness or optimism that could inspire intraday trends for the Aussie
China’s CPI and PPI (July 9, 1:30 am GMT)
- Annualized CPI could inch higher from 2.4% to 2.5% in June
- Monthly CPI is seen printing at -0.3% after -0.8% reading in May
- Annualized PPI to improve from -3.7% to -3.1%?
Overall risk appetite
- There aren’t a lot of top-tier reports from major economies so the Aussie can take direction from market risk sentiment this week
- The number of coronavirus cases, death and ICU bed rates, and vaccine and stimulus headlines can dictate intraweek trends for the comdoll
- Keep an eye on the U.S.-China trade negotiations as Trump hitting the campaign trail raises the chances of inflammatory statements against the U.S.’ trading partners
Technical snapshot
- Stochastic considers AUD as “oversold” against CAD, JPY, USD, and EUR on the daily time frame
- The Aussie is on short and long-term bullish trends against most of its major counterparts
- Even AUD/NZD is staying above the 200 SMA even as its shorter-term SMAs point to bearish trends
- AUD was most volatile against the safe havens and the European currencies in the last seven days
