The trading week of July 15-19, 2019 promises to be a big week for the Australian Dollar. This is because some key economic data will be released to the market. Starting off this news cycle will be the Chinese GDP data, which will be released at 12 noon Sydney time. Australia is a commodity-driven economy and a lot of China’s raw material imports (especially copper) comes from Australia. Therefore economic boost or slowdown in China will impact the AUD directly.
On Tuesday July 16, we have the Monetary Policy Committee’s minutes, which will indicate the tone and voting pattern of the last MPC meeting in deciding Australia’s interest rates. Then on Thursday July 19, the Australian employment data will hit the market. Employment growth is widely expected by analysts to have stagnated in June, with leading indicators suggesting that employment growth has slowed. Furthermore, temporary jobs that were available as a result of the recently held elections will start to wind up, and this is likely to dampen the employment report. A consensus figure of 5.2% for the unemployment rate, with 43,200 jobs added is expected for this report, which will be released at 11.30am Sydney time.
The employment data as well as the upcoming data on consumer inflation may be used by the Reserve Bank of Australia in deciding whether rate cuts are necessary and if so, when the cycle of easing will commence.
So watch out for the performance of the AUD/USD and AUD/JPY as these news releases hit the market in the week to come.Don’t miss a beat! Follow us on Twitter.
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