1Finance

The Australian dollar struggled to recover amid mixed data. The highlight of the upcoming week is undoubtedly the rate decision by the RBA. Will they hint about a rate cut?. Here are the highlights of the week.

1. MI Inflation Gauge: Monday, 00:00. A return to the previous level of around 0.1% could be seen now.
2. ANZ Job Advertisements: Monday, 00:30. The Australia and New Zealand Banking Group monitors the number of job ads as another gauge of the labor market. Ads remained unchanged back in September. We now get data for October.
3. AIG Construction Index: Monday, 22:30.
4. Rate decision: Tuesday, 3:30. The Reserve Bank of Australia has a neutral stance regarding rates. However, in a recent speech, we learned that at least one member leans to a rate cut. Since then, inflation figures came out and they were quite poor. Will the RBA open the door to a rate cut? That could be interesting. On the other hand, the recent drop int he value of the Aussie makes life easier for policymakers.
5. Chinese Trade Balance: Wednesday, 2:00. China is Australia’s No. 1 trade partner. The publication of the trade balance also provides a view into the changes in imports. Chinese imports consist of Australian metal exports. In September, China reported a surplus of 28.5 billion USD.A 39.5 billion surplus is on the cards now.
6. Home Loans: Thursday, 00:30. The figure for September is expected to be +2.1%.
7. RBA Monetary Policy Statement: Friday, 00:30. The RBA has another chance to influence the currency late in the week. The quarterly statement may provide insights about inflation and hints towards further moves. In the past, this document certainly had its impact on the A$.

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