Aussie traders are in for a busy week as they price in top-tier releases that can affect the Aussie’s trends against its major counterparts.
Which events am I talking about here?
Check them out!
RBA’s statement (Dec 1, 3:30 am GMT)
- After recently cutting its rates and introducing a bond-buying program in the last month, the Reserve Bank of Australia (RBA) is expected to take a chill pill in December
- RBA’s meeting minutes hinted at the members’ focus on its QE program in the months ahead as well as its reluctance to implement a negative interest rate policy
- RBA Governor Lowe (Dec 2, 12:00 am GMT) will also testify before the House of Representatives where he might stress that the central bank isn’t out of firepower
Q3 GDP release (Dec 2, 12:30 am GMT)
- The economy is expected to have grown by 2.4% after a 7.0% drop in Q2 as declining COVID-19 cases made way for more consumer and business activity
- Annual growth is seen at -4.7% from a -6.3% reading in Q2
- China is Australia’s biggest export market, so growth concerns in the world’s second-largest economy will also affect the demand for AUD
- China’s factory activity expands at the fastest pace in over three years
- China’s Caixin manufacturing (Dec 1, 1:45 am GMT) and services (Dec 3, 1:45 am GMT) PMIs are expected to weaken slightly from their October readings
Overall risk appetite
- COVID-19 cases, vaccine prospects, and stimulus updates in the major economies will continue to influence the Aussie’s trends in the next few days
- Australia’s escalating trade tensions with China could inspire intraday losses for the comdoll
- NFP-related updates, as well as Powell’s testimony, can affect AUD/USD’s trends as well as the overall demand for high-yielding bets like the Aussie
- Stochastic has AUD/USD, AUD/JPY, and AUD/CAD in the “overbought” zone
- AUD/NZD may be “oversold” on the daily time frame
- SMAs hint at the Aussie’s short-term bearish trends against the yen, euro, and the franc
- AUD/NZD is on a short and long-term bearish trend on the daily
- AUD is enjoying short and long-term bullish trends against GBP, USD, and CAD
- Like the Kiwi, the Aussie was most volatile against the safe-havens and the pound in the last month