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Aside from a quarterly CPI report, Aussie traders can look forward to China’s PMI releases this week.

Can Aussie see strong directional moves in the next couple of days?

Check out the market themes you need to pay attention to!

Quarterly CPI (Jul 29, 1:30 am GMT)

  • Prices rose by 0.3% from Q4 2019 to Q1 2020, the highest since Q3 2014
  • Annual prices ticked higher from 1.8% to 2.2%, the first time prices hit RBA’s 2% – 3% target band since early 2018
  • AUD popped up across the board but lost most of its intraday gains during the London session as traders considered that price increases were lockdown-related
  • Quarterly CPI is seen at -2.1% (from 0.3%) while the annual reading could hit -0.6% (from 2.2%) in Q2 2020

Lower-tier releases

  • Building approvals (Jul 30, 1:30 am GMT) expected to gain by 2.5% after a 16.4% decline in May
  • Quarterly PPI (Jul 31, 1:00 am GMT) to fall by 1.8% after 0.2% uptick in Q1

China’s PMIs (Jul 31, 1:00 am GMT)

  • AUD traders pay attention to China’s major releases because China is one of Australia’s biggest trading partners
  • Official manufacturing PMI is expected to improve from 50.9 to 51.0 in July
  • Non-manufacturing PMI is seen dipping from 54.4 to 54.1

Market risk sentiment

  • Coronavirus cases and lockdown measures in Australia will continue to affect AUD’s price action
  • Tensions between the U.S. and China will influence demand for high-yielding currencies like the comdolls
  • Earnings reports in the U.S. and FOMC’s statement might dim the dollar’s prospects and push AUD higher against USD

Technical snapshot

  • Stochastic considers the Aussie “oversold” against the euro
  • AUD/JPY, AUD/NZD, and AUD/USD are about to hit overbought status on the daily time frame
AUD Forex Pairs Stochastic from MarketMilk
AUD Forex Pairs Stochastic from MarketMilk
  • AUD remains on bullish trends against CAD, JPY, NZD, USD, and GBP
  • Watch out for retracement or reversal setups on AUD/CHF and EUR/AUD
AUD Forex Pairs EMAs from MarketMilk
AUD Forex Pairs EMAs from MarketMilk
  • The Aussie was most volatile against the safe havens 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 July 20 – 24!