Investing.com – Last week saw the Australian dollar close lower against its U.S. counterpart for the second consecutive week amid speculation that Australia’s central bank will leave its benchmark interest rate on hold next week.
AUD/USD hit 0.9651 on Wednesday, the pair’s lowest since October 5; the pair subsequently consolidated at 0.9834 by close of trade on Friday, shedding 0.35% over the week.
The pair is likely to find support at 0.9865, last Wednesday’s low and resistance at 0.9973, last Monday’s high.
On Wednesday, official data showed that Australian consumer price inflation rose less-than-expected in the third quarter. In a report, the Australian Bureau of Statistics said that CPI rose at a seasonally adjusted rate of 0.7% in the third quarter after rising 0.6% in the preceding quarter. Analysts had expected CPI to rise 0.8% in the third quarter.
The report said that CPI rose at an annual rate of 2.8% in the third quarter, compared to a 3.1% rise in the quarter ending in June. Core inflation rose 0.6% from the previous quarter and 2.5% from a year earlier.
The weak data curbed expectations of an interest rate hike by the Reserve Bank of Australia following next week’s policy meeting.
However the Aussie pared losses before the weeks end as uncertainty over the scope and potential impact of a fresh round of monetary easing by the U.S. Federal Reserve weighed on the greenback.
Next week’s economic calendar contains events capable of shaping currency markets for several weeks to come, with the Fed's November 2-3 FOMC meeting and U.S. nonfarm payrolls. In addition, the U.S. is to release key weekly data on initial jobless claims as well as data on pending home sales and reports on manufacturing and service sector growth.
Meanwhile, the Reserve Bank of Australia is to announce its benchmark interest rate while the country is to publish official data on building approvals, retail sales and trade balance.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 1
Australia will begin the week with the release of official data on house price changes, a leading indicator of health in the housing sector.
Meanwhile, the U.S. is to publish official data on personal income as well as data on personal spending, which accounts for the majority of overall economic activity. The country is also to publish industry data on manufacturing, a leading indicator of economic health.
Tuesday, November 2
The Reserve Bank of Australia is to announce its benchmark interest rate. The announcement will be followed by a closely watched rate statement which contains commentary about economic conditions and outlook. Later in the day, the country is to publish industry data on service sector growth.
Wednesday, November 3
Australia is to publish official data on building approvals, a leading indicator of growth in the housing sector.
Later in the day, the U.S. is to publish a key monthly report on ADP non-farm employment change, which leads government data by two days. The country is also to publish industry data on service sector growth. In addition, the Federal Reserve is to announce its benchmark interest rate. The announcement will be followed by the heavily anticipated FOMC rate statement.
Thursday, November 4
Australia is to publish official data on retail sales and the country’s trade balance, the difference in value between imported and exported goods during the month.
Later in the day, the U.S. is to publish key weekly data on initial jobless claims, the nation’s earliest economic data and a leading indicator of overall economic health. The country is also to publish quarterly data on non-farm productivity and labor costs, both leading inflationary indicators.
Friday, November 5
The Reserve Bank of Australia is to publish its monetary policy statement, providing valuable insight into the bank's view of economic conditions and inflation.
Meanwhile, the U.S. is to round up the week with data on non-farm employment change and a report on the country's unemployment rate. The country will also release official data on pending home sales, while Federal Reserve Chairman Ben Bernanke is due to deliver a speech at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
AUD/USD hit 0.9651 on Wednesday, the pair’s lowest since October 5; the pair subsequently consolidated at 0.9834 by close of trade on Friday, shedding 0.35% over the week.
The pair is likely to find support at 0.9865, last Wednesday’s low and resistance at 0.9973, last Monday’s high.
On Wednesday, official data showed that Australian consumer price inflation rose less-than-expected in the third quarter. In a report, the Australian Bureau of Statistics said that CPI rose at a seasonally adjusted rate of 0.7% in the third quarter after rising 0.6% in the preceding quarter. Analysts had expected CPI to rise 0.8% in the third quarter.
The report said that CPI rose at an annual rate of 2.8% in the third quarter, compared to a 3.1% rise in the quarter ending in June. Core inflation rose 0.6% from the previous quarter and 2.5% from a year earlier.
The weak data curbed expectations of an interest rate hike by the Reserve Bank of Australia following next week’s policy meeting.
However the Aussie pared losses before the weeks end as uncertainty over the scope and potential impact of a fresh round of monetary easing by the U.S. Federal Reserve weighed on the greenback.
Next week’s economic calendar contains events capable of shaping currency markets for several weeks to come, with the Fed's November 2-3 FOMC meeting and U.S. nonfarm payrolls. In addition, the U.S. is to release key weekly data on initial jobless claims as well as data on pending home sales and reports on manufacturing and service sector growth.
Meanwhile, the Reserve Bank of Australia is to announce its benchmark interest rate while the country is to publish official data on building approvals, retail sales and trade balance.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 1
Australia will begin the week with the release of official data on house price changes, a leading indicator of health in the housing sector.
Meanwhile, the U.S. is to publish official data on personal income as well as data on personal spending, which accounts for the majority of overall economic activity. The country is also to publish industry data on manufacturing, a leading indicator of economic health.
Tuesday, November 2
The Reserve Bank of Australia is to announce its benchmark interest rate. The announcement will be followed by a closely watched rate statement which contains commentary about economic conditions and outlook. Later in the day, the country is to publish industry data on service sector growth.
Wednesday, November 3
Australia is to publish official data on building approvals, a leading indicator of growth in the housing sector.
Later in the day, the U.S. is to publish a key monthly report on ADP non-farm employment change, which leads government data by two days. The country is also to publish industry data on service sector growth. In addition, the Federal Reserve is to announce its benchmark interest rate. The announcement will be followed by the heavily anticipated FOMC rate statement.
Thursday, November 4
Australia is to publish official data on retail sales and the country’s trade balance, the difference in value between imported and exported goods during the month.
Later in the day, the U.S. is to publish key weekly data on initial jobless claims, the nation’s earliest economic data and a leading indicator of overall economic health. The country is also to publish quarterly data on non-farm productivity and labor costs, both leading inflationary indicators.
Friday, November 5
The Reserve Bank of Australia is to publish its monetary policy statement, providing valuable insight into the bank's view of economic conditions and inflation.
Meanwhile, the U.S. is to round up the week with data on non-farm employment change and a report on the country's unemployment rate. The country will also release official data on pending home sales, while Federal Reserve Chairman Ben Bernanke is due to deliver a speech at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.