Australia isn’t printing a lot of top-tier economic reports, but China’s data releases could make price action more interesting for the Aussie bulls and bears.
Planning on trading the comdoll this week?
Here’s a list of potential market movers you need to know about!
Lower-tier economic releases
- ANZ’s job ads (Dec 7, 12:30 am GMT) to ease from 9.4% to 8.0% November
- Quarterly house price index (Dec 8, 12:30 am GMT) seen at -0.8% (from -1.8%) in Q3
- NAB business confidence (Dec 8, 12:30 am GMT) expected to improve from 5.0 to 6.0
- Westpac consumer sentiment (Dec 8, 11:30 pm GMT) printed at 2.5% in November
- MI inflation expectations (Dec 10, 12:00 am GMT) inched higher from 3.4% to 3.5% in October
China’s data prints
- Trade surplus (Dec 7, Asian session) could have narrowed down from $58.4B to $49.6B in November
- Imports are expected to speed up from 4.7% to 5.2% while exports could have grown by 10% (down from 11.4%)
- Monthly consumer prices (Dec 9, 1:30 am GMT) to show slower deceleration (-0.1% from -0.3%) in November
- Annual consumer prices seen at 0.1% after printing at 0.5% in October
- Producer prices (Dec 9, 1:30 am GMT) to dip by 1.8% after 2.1% decline in October
Overall risk appetite
- Continued dollar weakness would mean more support for higher-yielding currencies like the Aussie
- Progress on vaccine approvals, Brexit negotiations, and U.S. stimulus would inspire risk-taking in the markets
- Easing trade tensions between China and Australia can limit AUD’s losses especially during Asian sessions
Technical snapshot
- AUD/USD and AUD/JPY are in “overbought” territory
- AUD may soon hit “oversold” status against CHF, EUR, and CAD on the daily time frame
- The Aussie is on short AND long-term uptrends against the dollar, yen, and the pound
- Watch out for retracements or reversals on EUR/AUD, AUD/CHF, and AUD/CAD
- GBP/AUD, AUD/CHF, EUR/AUD, and AUD/JPY were the four most volatile Aussie pairs in the last week
