Investing.com – Last week saw the Australian dollar soar to a 26-year peak against its U.S. counterpart, amid fears that the Federal Reserve may implement further monetary easing and after better-than-expected Australian employment data.
AUD/USD hit 0.9916 on Thursday, the pair’s highest since July 8, 1982; the pair subsequently consolidated at 0.9844 by close of trade on Friday, jumping 1.18% over the week.
The pair is likely to find support at 0.9692, the low of October 6 and short-term resistance at 0.9916, the high of October 7.
On Thursday, the Australian Bureau of Statistics said that employers added 49,500 new jobs in September, more than the 20,200 forecast. Meanwhile, U.S. data released Friday showed that non-farm payrolls fell unexpectedly in September, down for the fourth consecutive month.
Earlier in the week, the Reserve Bank of Australia left its benchmark interest rate unchanged at 4.5% for the fifth consecutive month in October, contrary to expectations of a rate hike.
Commenting on the decision, monetary policy committee member Graham Kraehe said that the bank still had a bias toward raising interest rates but will need to be more confident that the global economy will hold up before it tightens further.
Next week, the U.S. is to publish its closely watched weekly report on initial jobless claims as well as key data on inflation, retail sales and consumer sentiment. In addition, Federal Reserve chairman Ben Bernanke is to speak at two public engagements, while the bank is to publish the minutes of the most recent meeting of its monetary policy committee.
Meanwhile, Australia is to publish official data on home loans and as well as data on inflation expectations, business confidence and consumer sentiment.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect AUD/USD.
Monday, October 11
Australia will begin the week with official data on the change in the number of new loans granted for owner-occupied homes, a leading indicator of demand in the housing market.
Meanwhile, markets in the U.S. will remain closed on Monday for the Columbus Day holiday.
Tuesday, October 12
The U.S. is to publish the minutes of the most recent meeting of the Federal Reserve’s Federal Open Market Committee. The minutes provide in-depth insights into the economic conditions that influenced their vote on where to set interest rates.
Also Tuesday, Australia is to publish industry data on consumer sentiment and business confidence, both leading indicators of economic health.
Wednesday, October 13
The U.S. is to release key data on import prices, while Fed chair Ben Bernanke is due to speak at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
Thursday, October 14
The U.S. is to release key weekly data on initial jobless claims, a leading indicator of overall economic health. The country is also to publish a report on producer prices, a leading indicator of consumer inflation. Later in the day, the U.S. will publish official data on its trade balance, the difference in value between imported and exported goods during the month, as well reports on crude oil and natural gas stockpiles.
In addition, the Melbourne Institute is to publish a report on inflation expectations.
Friday, October 15
The U.S. is to round up the week by producing official data on retail sales, business inventories and its consumer price index, while the University of Michigan is to release preliminary data on consumer sentiment and inflation expectations. Also Friday, the Federal Reserve Bank of New York is due to release key data on the city’s manufacturing sector while Fed chair Ben Bernanke will be speaking at a public engagement.
AUD/USD hit 0.9916 on Thursday, the pair’s highest since July 8, 1982; the pair subsequently consolidated at 0.9844 by close of trade on Friday, jumping 1.18% over the week.
The pair is likely to find support at 0.9692, the low of October 6 and short-term resistance at 0.9916, the high of October 7.
On Thursday, the Australian Bureau of Statistics said that employers added 49,500 new jobs in September, more than the 20,200 forecast. Meanwhile, U.S. data released Friday showed that non-farm payrolls fell unexpectedly in September, down for the fourth consecutive month.
Earlier in the week, the Reserve Bank of Australia left its benchmark interest rate unchanged at 4.5% for the fifth consecutive month in October, contrary to expectations of a rate hike.
Commenting on the decision, monetary policy committee member Graham Kraehe said that the bank still had a bias toward raising interest rates but will need to be more confident that the global economy will hold up before it tightens further.
Next week, the U.S. is to publish its closely watched weekly report on initial jobless claims as well as key data on inflation, retail sales and consumer sentiment. In addition, Federal Reserve chairman Ben Bernanke is to speak at two public engagements, while the bank is to publish the minutes of the most recent meeting of its monetary policy committee.
Meanwhile, Australia is to publish official data on home loans and as well as data on inflation expectations, business confidence and consumer sentiment.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect AUD/USD.
Monday, October 11
Australia will begin the week with official data on the change in the number of new loans granted for owner-occupied homes, a leading indicator of demand in the housing market.
Meanwhile, markets in the U.S. will remain closed on Monday for the Columbus Day holiday.
Tuesday, October 12
The U.S. is to publish the minutes of the most recent meeting of the Federal Reserve’s Federal Open Market Committee. The minutes provide in-depth insights into the economic conditions that influenced their vote on where to set interest rates.
Also Tuesday, Australia is to publish industry data on consumer sentiment and business confidence, both leading indicators of economic health.
Wednesday, October 13
The U.S. is to release key data on import prices, while Fed chair Ben Bernanke is due to speak at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
Thursday, October 14
The U.S. is to release key weekly data on initial jobless claims, a leading indicator of overall economic health. The country is also to publish a report on producer prices, a leading indicator of consumer inflation. Later in the day, the U.S. will publish official data on its trade balance, the difference in value between imported and exported goods during the month, as well reports on crude oil and natural gas stockpiles.
In addition, the Melbourne Institute is to publish a report on inflation expectations.
Friday, October 15
The U.S. is to round up the week by producing official data on retail sales, business inventories and its consumer price index, while the University of Michigan is to release preliminary data on consumer sentiment and inflation expectations. Also Friday, the Federal Reserve Bank of New York is due to release key data on the city’s manufacturing sector while Fed chair Ben Bernanke will be speaking at a public engagement.