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After a mixed trading week, will the RBA’s meeting minutes encourage one-directional trends for the Aussie?
Check out the economic reports and themes you need to pay attention to if you’re trading the comdoll this week:
RBA’s meeting minutes (Aug 18, 2:30 am GMT)
- Earlier this month, Reserve Bank of Australia (RBA) members kept their interest rates unchanged at 0.25% and were upbeat over signs of economic recovery
- While they said that a negative interest rate was “unlikely,” members haven’t ruled out adjusting their stimulus efforts
- Read up on their sentiments on launching further stimulus, negative interest rates, and the Aussie’s current levels against its counterparts
Lower-tier economic data
- MI leading index (Aug 19, 1:30 am GMT) last printed a 0.4% uptick after a 0.2% increase in June
- Markit’s manufacturing PMI (Aug 20, 12:00 am GMT) could dip from 54.0 to 53.5 in August
- Markit’s services PMI also seen weakening for the month
- People’s Bank of China (PBoC)’s closely watched 1-year loan prime rate is expected to be left unchanged at 3.85%
Market risk appetite
- Like in the previous week, coronavirus cases in key Australian regions and what they mean for the government’s lockdown plans will continue to affect AUD’s intraweek trends
- Coronavirus-related updates from other major economies (number of cases, lockdown prospects, vaccine updates, and stimulus announcements) can influence the demand for high-yielding currencies like the Aussie
- Closely watched releases like the FOMC’s meeting minutes and PMIs from the European region and the U.S. can also affect overall risk sentiment and AUD’s prices
Technical snapshot
- Stochastic considers the Aussie “oversold” against the Loonie
- AUD may soon see oversold conditions against EUR and CHF
- AUD/JPY and AUD/NZD are “overbought” on the daily time frame

- Daily 50 and 200 SMAs are reflecting AUD’s bullish trends against most of its counterparts
- Watch out for retracement or reversal opportunities against the European currencies (EUR, CHF, GBP)

- AUD was most volatile against USD, CAD, JPY, and GBP in the last seven days

Missed last week’s price action? Read AUD’s price recap for August 10 – 14!