Start your trading prep for the week by plotting these upcoming economic releases and market events on your schedule and checking out these potential plays.
Australia data dump (Dec. 4-7)
The Aussie could be the star of the forex show for almost the entire week as the Land Down Under gears up to release a bunch of top-tier economic figures.
First up, we’ve got the current account balance and retail sales figure due on Tuesday’s Asian session. Between these two reports, the latter could hog the spotlight as consumer spending accounts for a huge chunk of overall economic growth.
This should also help market watchers gauge how the next day’s release of the Q3 GDP figure might turn out. Analysts are expecting to see a 0.7% expansion, which would be slightly slower than the earlier quarter’s 0.8% growth figure.
The action doesn’t end there as Thursday’s release of the trade balance could still generate a big reaction from the Australian dollar since its components gauge global appetite for commodities.
RBA interest rate statement (Dec. 5, 3:30 am GMT)
Even though the Reserve Bank of Australia is widely expected to keep interest rates unchanged at 1.50% for the nth time, this particular announcement could still be influential for AUD direction. After all, it’s the RBA last statement for the year and they won’t be meeting again until February!
Keep in mind that most leading inflation indicators for Australia have been ticking lower, so RBA head honcho Lowe might think about throwing a couple of jawboning hints here and there.
European Commission Brexit assessment (Dec. 6)
The next set of Brexit-related episodes could prove to be more exciting than the premier of the second season of “The Crown” later this week, as rumors have been swirling that the negotiating teams are nearing a deal.
PM May is scheduled to have a sit-down with Juncker today before the EU holds its own meeting to assess the U.K’s progress a couple of days later. An official announcement is expected soon after, but the Irish border issue remains the bone of contention.
BOC interest rate statement (Dec. 6, 3:00 pm GMT)
The Bank of Canada will have its turn announcing its monetary policy decision mid-week, but the central bank is also widely expected to sit on its hands.
Then again, it’s also worth noting that both the latest monthly GDP reading and employment report surpassed expectations, so BOC policymakers could have reason to stay optimistic this time.
U.S. non-farm payrolls report (Dec. 8, 1:30 pm GMT)
Last but certainly not least is the U.S. NFP release, which also typically generates a lot of volatility for dollar pairs. Analysts are expecting hiring gains of 200K for November, which would be slower compared to October’s 261K gain.
However, the scrilla seems to be paying closer attention these days to tax reform updates, North Korea’s threats, the ongoing investigation into Trump’s dealings with Russia, and how Stranger Things was renewed for another season.
Charts to Watch:
This pair looks prime for another pullback to the ascending trend line support that’s been holding for nearly three months already. It’s a neat textbook break-and-retest play, and the Brexit updates and BOC statement could bring more volatility to the table.
Here’s another break-and-retest setup that’s going on, and it looks like euro bulls are doing a fine job of defending the area of interest so far. The upcoming top-tier catalysts from Australia, however, could determine where this pair might be headed next.
Lastly here’s another setup that’s worth watching if Brexit talks don’t pan out so well. If the rumors of an EU-UK deal prove to be unfounded and discussions do a complete 180, this one could be prime for a bounce right back up to the resistance near the .9000 handle.