• This week, we have multiple high-impact impact data releases in the AU & US markets.
• The AUDUSD has fallen 5% since mid-July, but we may see some consolidation now.
• Expecting the AUDUSD to range between 0.6450 and 0.6580 this week on technical analysis.
• USD is expected to consolidate this week after AUDUSD nosediving almost 5% and the USD (DXY) gaining 3% strength since mid-July.
• US retail sales are expected to be slightly strong, demonstrating the resilience of consumer spending in a recessionary environment.
• Although the US inflation rate is dropping significantly, the war is not over and has a fair way to reach target inflation.
• July’s FOMC meeting minutes are likely to show the market’s push towards another potential rate hike, further indicating the cycle has not peaked.
• Although the market is hesitant to believe that more tightening is required.
• Locally, AUD/USD is subject to wage price index & monetary policy minutes which may indicate whether the AU rate cycle has definitely peaked or commentary on when they’re expecting to start cutting.
• AUD/USD can potentially test its recent low of 0.6458.
Economic Calendar: Mon 14th August 2023 – Fri 18th August 2023 (High Impact) (AU/US) | |||||
Day | Time | Event | Country | Forecast | Previous |
Tues | 11:30am | Monetary Policy Meeting Minutes | AU | N/A | N/A |
Wage Price Index q/q | AU | 0.9% | 0.8% | ||
10:30pm | Core Retail Sales m/m | US | 0.4% | 0.2% | |
Empire State Manufacturing Index | US | -0.3 | 1.1 | ||
Retail Sales m/m | US | 0.4% | 0.2% | ||
Thur | 4:00am | FOMC Meeting Minutes | US | 15.2K | 32.6K |
11:30am | Employment Change | AU | 3.6% | 3.5% | |
10:30pm | Unemployment Claims | US | 240K | 248K |