We’ve also seen a parabolic rise in the Australian dollar.
Data has been healthy with rising consumer inflation expectations joining the increases in consumer and business confidence but it was the sharp jump in Chinese imports along with a widening AU-US yield spread that sent the Australian dollar to its strongest level in a year. Unfortunately the Reserve Bank won’t be happy to see the currency climb further since their last monetary policy meeting and the 3 Australian policymakers scheduled to speak next week (Heath, Debelle and Bullock) could use these opportunities to try to talk down the currency. The RBA minutes are scheduled for release along with Australia’s employment report. When the RBA last met, they sent AUD tumbling lower as they refrained from expressing the same hawkish sentiment as some of their peers. If the RBA minutes are cautious, AUD/USD will peak. Australia’s employment report is not expected to help AUD as slower job growth in the manufacturing and construction sectors offset stronger growth in the service sector.
China Q2 GDP
China is scheduled to release data on second quarter gross domestic product at around 0200GMT on Monday (10:00PM ET Sunday.
The report is expected to show the world's second largest economy grew 6.8% in the three months ended June 30, tempering initial worries of a sharper slowdown as Beijing walks a policy tightrope with its quest to crackdown on financial risks and limit damage to the economy.
The Asian nation will also publish data on June industrial production, fixed asset investment and retail sales along with the GDP report.
Data has been healthy with rising consumer inflation expectations joining the increases in consumer and business confidence but it was the sharp jump in Chinese imports along with a widening AU-US yield spread that sent the Australian dollar to its strongest level in a year. Unfortunately the Reserve Bank won’t be happy to see the currency climb further since their last monetary policy meeting and the 3 Australian policymakers scheduled to speak next week (Heath, Debelle and Bullock) could use these opportunities to try to talk down the currency. The RBA minutes are scheduled for release along with Australia’s employment report. When the RBA last met, they sent AUD tumbling lower as they refrained from expressing the same hawkish sentiment as some of their peers. If the RBA minutes are cautious, AUD/USD will peak. Australia’s employment report is not expected to help AUD as slower job growth in the manufacturing and construction sectors offset stronger growth in the service sector.
China Q2 GDP
China is scheduled to release data on second quarter gross domestic product at around 0200GMT on Monday (10:00PM ET Sunday.
The report is expected to show the world's second largest economy grew 6.8% in the three months ended June 30, tempering initial worries of a sharper slowdown as Beijing walks a policy tightrope with its quest to crackdown on financial risks and limit damage to the economy.
The Asian nation will also publish data on June industrial production, fixed asset investment and retail sales along with the GDP report.