The Aussie started the year on the top of the forex heap last week.
Can the bulls pull back-to-back wins?
Here are potential market-moving themes that can affect the comdoll in the next few days!
Lower-tier economic reports
China’s data releases
- China is one of Australia’s biggest trading partners so China’s growth prospects can influence AUD’s price action
- China’s CPI shows slower consumer inflation, while PPI numbers point to continued deflation for businesses
- Foreign direct investment (Jan 13, Asian session) might slow down from 6.3% to 6.0%
- Trade data (Jan 14, Asian session) to reflect tighter trade surplus in December
- Exports are expected to slow down, while imports could speed up for the month
Market risk sentiment
- Stimulus prospects in the U.S. can limit AUD’s gains against USD in the next few days
- COVID-19 updates (new strains, rising cases, lockdown plans, vaccine schedule) will continue to influence overall risk-taking
- Top-tier reports from other major economies (ex. Germany’s GDP, U.S.’ retail sales release) can cause intraday spikes for AUD’s major pairs
Technical snapshot
- Stochastic is showing AUD’s overbought conditions across the board on the daily time frame
- EMAs reflect the Aussie’s short-term bearish trends against its major counterparts
- AUD/NZD is still on its short and long-term bullish trend
- AUD saw the most volatility against the safe-havens and the pound in the last seven days
Missed last week’s price action? Read AUD’s price recap for Jan. 4 – 8!
