* Aussie rallies overnight on USD weakness
* Federal Budget has little impact on local currency
* All eyes on Australian Inflation numbers due today at 11:30am AEDT
The past 24 hours has been another mixed bag for the Aussie. The late release on Monday afternoon of Chinese economic data (GDP and Retail Sales) also a mixed bag was overshadowed by concerns their strict COVID policy is having an impact on their economy and Australia’s by default. This saw the AUD/USD touch 0.6280 early yesterday. However as has been all too familiar the AUD bounced back overnight on weaker US housing and consumer data to reach a high of 0.6410 before settling at its current level.
Todays Australian inflation numbers will be keenly watched and considered. Anything too much from the expected could see the Aussie move quickly as it looks for short term direction. Over the next week we have the European Central Bank meeting tomorrow, the RBA meeting next Tuesday, the US Fed meeting next Tues-Wed and the Bank of England meeting next Thursday. All are expected to increase rates anywhere from 25 basis points to possibly 100 basis points so todays local CPI numbers will have the markets on edge.
| Economic Calendar: Mon 24th – Fri 28th October | |||||
| Day | Time | Event | Impact | Consensus | Previous |
| Mon | 7:30pm | GBP Purchasing Managers Index (Services) (Oct) | HIGH | 49 | 50 |
| Tues | 12:45am | USD Purchasing Managers Index (Manuf.) (Oct) | Med | 51.2 | 52 |
| 7:30pm | AUD Federal Budget | HIGH | Report | ||
| Wed | midnight | USD Housing Price Index (MoM) (Aug) | Med | -0.3% | -0.6% |
| 11:30am | AUD Consumer Price Index (QoQ) (Q3) | HIGH | 1.5% | 1.8% | |
| 11:30am | AUD Consumer Price Index (YoY) (Q3) | HIGH | 7% | 6.1% | |
| Thu | 1am | USD New Home Sales (MoM) (Sep) | Med | 0.585M | 0.685M |
| 11:15pm | EUR ECB rate on main refinancing (rate decision) | HIGH | 2% | 1.25% | |
| 11:30pm | USD Durable Goods Orders (Sep) | HIGH | 0.6% | -0.2% | |
| 11:30pm | USD Gross Domestic Product Annualized (Q3) | HIGH | 2.4% | -0.6% | |
| 11:30pm | USD Jobless Claims (Oct 21) | Med | 220K | 214K | |
| Fri | 2pm | JPY BoJ Interest Rate Decision | HIGH | -0.1% | -0.1% |