Investing.com – Last week saw Australia’s dollar tumble to a 2-month low against its U.S. counterpart on Friday, after the governor of the Reserve Bank of Australia indicated the country’s benchmark interest rate was appropriate in the near term.
AUD/USD hit 0.9621 on Friday, the pair’s lowest since October 5; the pair subsequently consolidated at 0.9642 by close of trade, tumbling 2.33% over the week.
The pair is likely to find support at 0.9541, the low of October 5 and resistance at 0.9849, last Thursday’s high.
On Friday, RBA Governor Glenn Stevens said that the nation’s interest rate was appropriate for the “period ahead.” With less than two weeks to go before the RBA’s next policy meeting, Stevens indicated that with unemployment hovering around 5%, the pace of wage growth wasn’t “alarming.”
The remarks stoked concern that a commodity-driven Chinese global growth led economy may be cooling off.
Meanwhile, official data released last week painted a mixed picture of the U.S. economic recovery.
On Wednesday, Department of Labor data showed that the number of people who filed for unemployment assistance in the U.S. in the week ended November 20 fell to the lowest level since July 2008. Separate reports showed that U.S. consumer sentiment rose to a 5-month high in November, while U.S. personal spending rose for the fourth consecutive month in October.
But official data also showed that both U.S. core durable goods orders and durable goods orders, which include transportation items, tumbled unexpectedly in October, while U.S. new home sales also fell unexpectedly in October.
Next week, the U.S. is to release data on ADP non-farm payrolls on Wednesday, ahead of the closely watched government data on non-farm employment on Friday. The government is also to publish its weekly report on initial jobless claims.
In addition, the U.S. is to release data on consumer confidence, pending home sales, manufacturing and service sector growth while the chairman of the Federal Reserve is to speak at a public engagement.
Meanwhile, Australia is to release data on third quarter gross domestic product, retail sales, trade balance and building approvals.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 29
RBA Governor Glenn Stevens is to deliver a speech in Melbourne; his comments will be closely watched for possible clues to the future direction of monetary policy. Also Monday, Australia is to release official data on company operating profits.
Tuesday, November 30
The U.S. is to publish industry data on house prices, an important indicator of economic health as well as data on consumer confidence, a leading indicator of consumer spending. The country is also to release an index of manufacturing growth in the Chicago area, while Federal Reserve Chairman, Ben Bernanke is to speak at a public engagement.
Elsewhere, Australia is to publish official data on building approvals, an important gauge of future construction activity. Later in the day, the country is to produce reports on its current account, private sector credit and manufacturing growth.
Wednesday, December 1
Australia is to publish third quarter GDP data, the broadest measure of economic activity and the primary gauge of the economy's health. Later in the day, the country is to release official data on commodity prices, which account for over half of Australia's export earnings.
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 revised data on nonfarm productivity, as well as official data on manufacturing activity, construction spending, total vehicle sales and crude oil inventories. In addition, the Federal Reserve is to publish its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate.
Thursday, December 2
The U.S. is to publish key weekly data on initial jobless claims, a leading indicator of overall economic health. The country will also release official data on pending home sales and natural gas storage.
Australia is to publish official data on retail sales, the primary indicator of consumer spending, which accounts for the majority of overall economic activity. The country is also to release data on the trade balance, the difference in value between imported and exported goods during the month. Later in the day, the country is to publish industry data on service sector growth.
Friday, December 3
The U.S. is to round up the week with key data on non-farm employment change and a report on the country's unemployment rate, both leading indicators of economic health. The country is also to publish industry data on service sector growth as well as official data on factory orders.
AUD/USD hit 0.9621 on Friday, the pair’s lowest since October 5; the pair subsequently consolidated at 0.9642 by close of trade, tumbling 2.33% over the week.
The pair is likely to find support at 0.9541, the low of October 5 and resistance at 0.9849, last Thursday’s high.
On Friday, RBA Governor Glenn Stevens said that the nation’s interest rate was appropriate for the “period ahead.” With less than two weeks to go before the RBA’s next policy meeting, Stevens indicated that with unemployment hovering around 5%, the pace of wage growth wasn’t “alarming.”
The remarks stoked concern that a commodity-driven Chinese global growth led economy may be cooling off.
Meanwhile, official data released last week painted a mixed picture of the U.S. economic recovery.
On Wednesday, Department of Labor data showed that the number of people who filed for unemployment assistance in the U.S. in the week ended November 20 fell to the lowest level since July 2008. Separate reports showed that U.S. consumer sentiment rose to a 5-month high in November, while U.S. personal spending rose for the fourth consecutive month in October.
But official data also showed that both U.S. core durable goods orders and durable goods orders, which include transportation items, tumbled unexpectedly in October, while U.S. new home sales also fell unexpectedly in October.
Next week, the U.S. is to release data on ADP non-farm payrolls on Wednesday, ahead of the closely watched government data on non-farm employment on Friday. The government is also to publish its weekly report on initial jobless claims.
In addition, the U.S. is to release data on consumer confidence, pending home sales, manufacturing and service sector growth while the chairman of the Federal Reserve is to speak at a public engagement.
Meanwhile, Australia is to release data on third quarter gross domestic product, retail sales, trade balance and building approvals.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 29
RBA Governor Glenn Stevens is to deliver a speech in Melbourne; his comments will be closely watched for possible clues to the future direction of monetary policy. Also Monday, Australia is to release official data on company operating profits.
Tuesday, November 30
The U.S. is to publish industry data on house prices, an important indicator of economic health as well as data on consumer confidence, a leading indicator of consumer spending. The country is also to release an index of manufacturing growth in the Chicago area, while Federal Reserve Chairman, Ben Bernanke is to speak at a public engagement.
Elsewhere, Australia is to publish official data on building approvals, an important gauge of future construction activity. Later in the day, the country is to produce reports on its current account, private sector credit and manufacturing growth.
Wednesday, December 1
Australia is to publish third quarter GDP data, the broadest measure of economic activity and the primary gauge of the economy's health. Later in the day, the country is to release official data on commodity prices, which account for over half of Australia's export earnings.
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 revised data on nonfarm productivity, as well as official data on manufacturing activity, construction spending, total vehicle sales and crude oil inventories. In addition, the Federal Reserve is to publish its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate.
Thursday, December 2
The U.S. is to publish key weekly data on initial jobless claims, a leading indicator of overall economic health. The country will also release official data on pending home sales and natural gas storage.
Australia is to publish official data on retail sales, the primary indicator of consumer spending, which accounts for the majority of overall economic activity. The country is also to release data on the trade balance, the difference in value between imported and exported goods during the month. Later in the day, the country is to publish industry data on service sector growth.
Friday, December 3
The U.S. is to round up the week with key data on non-farm employment change and a report on the country's unemployment rate, both leading indicators of economic health. The country is also to publish industry data on service sector growth as well as official data on factory orders.