• One major headliner this week is the RBA’s cash rate announcement, expected @ 4.35%.
• There was a bank holiday on Monday in AU, so we saw the USD driving the AUDUSD pair.
• Expect the AUDUSD to continue its bearish moves this week, ranging from 0.6333 to 0.6560.
• AUDUSD will remain bearish this week under the 65c level due to rising concerns of a US recession.
• This week’s key headliner is the RBA’s cash rate announcement, which is widely estimated to remain at 4.35%.
• However, the most recent CPI update has shifted market expectations. The market now expects a 0.25% cut by year-end, whereas we were talking about a potential hike just last month. This is negative for the AUDUSD.
• Increased chatter around a potential US recession is causing more chaos in the markets. The global equity markets took a hammering on the exchanges, which flowed to the currency market.
• We expect the AUDUSD to remain bearish this week, with news from the US primarily driving the currency pair south.
| Economic Calendar: Mon 5th August 2024 – Fri 9th August 2024 (High Impact) (AU/US) | |||||
| Day | Time (AEDT) | Event | Country | Forecast | Previous |
| Mon | All Day | Bank Holiday | AU | N/A | N/A |
| Tues | 12:00am | ISM Services PMI | US | 51.1 | 48.8 |
| 2:30pm | Cash Rate / Statement | AU | 4.35% | 4.35% | |
| Thur | 12:40pm | RBA Gov Bullock Speaks | AU | N/A | N/A |
| 10:30pm | Unemployment Claims | US | 245K | 249K | |
Source: forexfactory.com