The AUD has many challenges awaiting it this week. The first of these will come today at 6.30pm EST, in the form of the CPI release from the UK. Inflation is looking to decrease as expectation is currently sitting at 1.6% from a previous figure of 1.7%. Considering they are targeting 2%, this result may cause a sell off in the sterling.
The second release set to challenge the AUD is later on this evening at 10.30EST as USD CPI data for March is expected to increase to 1.5% from a February figure of 1.1%. These figures will be good for the USD if the figures come to fruition. However, recently we have been seeing most of the USD actual figures come in below par from expectations so there is a chance that these might follow suit. When the actual figure comes out they will determine how investors react.
Finally the Chinese GDP figure on Wednesday is set to come out at 12pm. Expectations are looking bearish for the AUD as they are set to decrease with expectations of 7.3% from previous figures of 7.7%. Eyes have been on China’s economy as there have been fears of struggle in their economy and hints of an economic slowdown. If these expected figures become actual figures, it should reconfirm the fears of the Chinese economy and the AUD may be sold off as China is our major trading partner.
So just to recap;
- USD Advance retail sales, tonight 10.30pm (last months, 0.3%) expectations 0.8%
- USD CPI YoY Tuesday 10.30pm (last figure, 1.1%) expectation 1.5%
- Chinese GDP Wednesday, 12pm. (Last month’s 7.7%), expectations 7.3%