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Forex - AUD/USD weekly outlook: April 13 - 17

Published 04/12/2015, 09:37 AM
AUD/USD ends the week up 0.69% after RBA keeps rates on hold
AUD/USD
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Investing.com - The Australian dollar edged lower against its U.S. counterpart on Friday, amid ongoing uncertainty over the timing of a Federal Reserve rate hike.

AUD/USD hit 0.7738 on Thursday, the pair's strongest level since March 30, before subsequently consolidating at 0.7682 by close of trade on Friday, down 0.13% for the day.

For the week, the pair inched up 0.69%, the first weekly gain in three weeks, as sentiment on the Aussie recovered after the Reserve Bank of Australian left interest rates on hold.

The RBA held its benchmark interest rate at 2.25% on Tuesday, in a widely expected decision.

RBA Governor Glenn Stevens reiterated that "further easing may be appropriate over the period ahead, to foster sustainable growth in demand and inflation consistent with the target."

Meanwhile, indications that the U.S. economy slowed in the first quarter fuelled bets the Federal Reserve will hold off on hiking interest rates until late 2015.

In the week ahead, markets will be looking ahead to Tuesday’s report on U.S. retail sales, as well as Friday’s reports on inflation and consumer sentiment, for further indications on the strength of the economy.

Traders are also looking ahead to a raft of Chinese economic data in the week ahead, including reports on first quarter gross domestic product, as well as data on industrial production and the trade balance.

The Asian nation is Australia's largest trade partner.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, April 13

China is to release data on the trade balance.

Tuesday, April 14

The U.S. is to release data on retail sales and producer prices.

Wednesday, April 15

Australia is to publish private sector data on consumer sentiment.

China is to release official figures on GDP growth and fixed asset investment.

The U.S. is to release reports on industrial production and manufacturing activity in New York state.

Meanwhile, the European Central Bank is to announce its interest rate decision. The rate announcement is to be followed by a press conference with President Mario Draghi.

Thursday, April 16

Australia is to release its latest employment report.

The U.S. is to release a string of reports, including jobless claims, building permits, housing starts and manufacturing activity in the Philadelphia region.

Friday, April 17

The U.S. is to round up the week with data on consumer prices and consumer sentiment.

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