The Australian dollar struggled at the 0.70 handle but did not fall off. It now faces the jobs report, Chinese GDP and more. Here are the highlights of the week and an updated technical analysis for AUD/USD.
Stocks markets tumbled down and this adverse atmosphere weighed on the Australian Dollar, a risk currency. OK Chinese trade balance numbers and USD weakness that was partly a result of unimpressive inflation figures weighed on the Aussie.
AUD/USD daily graph with support and resistance lines on it. Click to enlarge:
Monetary Policy Meeting Minutes: Tuesday, 00:30. The Reserve Bank of Australia left the interest rate unchanged in early October, as it did in over two years. The minutes from the decision may reveal more about the RBA’s thoughts about the global economy, housing in Sydney, and other topics that affect monetary policy.
Guy Debelle talks: Tuesday, 21:20. The Assistant Governor at the RBA will speak in Sydney and will speak about the labor market, in a very timely fashion, just over a day before the jobs report. Debelle is unlikely to hint about the data, but may provide information about what the RBA seeks to see in the labor market.
Australian jobs report: Thursday, 00:30. The economy of the land down under saw an impressive increase of 44K in August, significantly above expectations. The report for September is projected to show a modest increase of 15.2K positions, more aligned with the averages of recent years. The unemployment rate is expected to remain unchanged at 5.3%. The Australian job market is doing well despite some hiccups in the housing sector and fears about China.
NAB Quarterly Business Confidence: Thursday, 00:30. The National Australia Bank releases a quarterly figure in addition to the monthly one. In the past couple of years, the number stood at either 7 or 8 according to the revised data. After a score of 7 in Q2, it will be interesting to see if business confidence drops this time.
Chinese GDP: Friday, 2:00. The world’s second-largest economy publishes its GDP very early after the quarter ends. While many raise their eyebrows at the accuracy of the data, it still moves markets. A very modest slowdown is projected for Q3: 6.6% annualized against 6.7% in Q2. Some fear that the tariffs may have caused and may cause more severe disruptions, impacting the whole world.
