Investing.com – Last week saw the Australian dollar surge to a 2-year high against its U.S. counterpart amid concerns over faltering U.S. growth and amid speculation of further Australian interest rate hikes this year.
AUD/USD hit 0.9614 on Friday, the pair's highest since July 24, 2008; the pair subsequently consolidated at 0.9590 by close of trade, having jumped 2.23% over the week.
The pair is likely to find support at 0.9360, the low of September 20 and resistance at 0.9791, the high of July 22, 2008.
On Tuesday, in their monetary policy statement for October, Federal Reserve officials said the U.S. economic recovery was likely to remain modest in the near term and indicated concern over sluggish U.S. growth and continuing low levels of inflation.
The statement fuelled concerns that the Fed may begin another round of asset purchases, known as quantitative easing to bolster flagging U.S. growth and reduce the risk of the U.S. falling into deflation.
Meanwhile, minutes from the Reserve Bank of Australia’s September monetary policy meeting said that higher interest rates may be needed to cope with the nation’s economic expansion. The RBA has already raised borrowing costs in six, quarter-percentage-point steps from October to May.
Next week, the U.S. is to release key weekly data on initial jobless claims as well as data on unemployment, consumer confidence and manufacturing. The country is also to release final GDP data while Federal Reserve chief Ben Bernanke is to speak at two public engagements.
Australia is to release data on building approvals and inflation as well as an index of leading economic indicators. The Reserve Bank of Australia is to publish its financial stability review.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect AUD/USD. The guide begins on Tuesday, as there are no such events on Monday.
Tuesday, September 28
The U.S. is to publish data on consumer confidence, a leading indicator of consumer spending, which accounts for approximately 70% of all economic activity. The country is also due to release industry data on house prices as well as a report on manufacturing activity in the Richmond area.
Wednesday, September 29
In the U.S., President of the Federal Reserve Bank of Boston Eric Rosengren is due to speak on the nation’s economy. His comments will be closely scrutinized for any clues to the future direction of monetary policy. The country is also to produce data on crude oil inventories.
Australia is to publish an index of leading economic indicators, designed to predict the future direction of the economy as well as data on new home sales.
Thursday, September 30
The U.S. is to release final data on its gross domestic product, the leading indicator of economic growth. The country is also due to produce key data on initial jobless claims and manufacturing activity in Chicago.
Later in the day, Federal Reserve Chairmen Ben Bernanke is expected to deliver a speech on the U.S. economy. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
Australia is due to release official data on building approvals, and private sector credit while the Reserve Bank of Australia is to publish its financial stability review, an assessment of conditions in the financial system and potential risks to financial stability.
Friday, October 1
The U.S. is to round up the week by producing key data on personal spending and income, while the University of Michigan is to release revised data on consumer sentiment and inflation expectations. The country is also to release official data on manufacturing conditions, total vehicle sales and construction spending.
Also Friday, Australia is to release official data on commodity prices, a leading inflationary indicator.
AUD/USD hit 0.9614 on Friday, the pair's highest since July 24, 2008; the pair subsequently consolidated at 0.9590 by close of trade, having jumped 2.23% over the week.
The pair is likely to find support at 0.9360, the low of September 20 and resistance at 0.9791, the high of July 22, 2008.
On Tuesday, in their monetary policy statement for October, Federal Reserve officials said the U.S. economic recovery was likely to remain modest in the near term and indicated concern over sluggish U.S. growth and continuing low levels of inflation.
The statement fuelled concerns that the Fed may begin another round of asset purchases, known as quantitative easing to bolster flagging U.S. growth and reduce the risk of the U.S. falling into deflation.
Meanwhile, minutes from the Reserve Bank of Australia’s September monetary policy meeting said that higher interest rates may be needed to cope with the nation’s economic expansion. The RBA has already raised borrowing costs in six, quarter-percentage-point steps from October to May.
Next week, the U.S. is to release key weekly data on initial jobless claims as well as data on unemployment, consumer confidence and manufacturing. The country is also to release final GDP data while Federal Reserve chief Ben Bernanke is to speak at two public engagements.
Australia is to release data on building approvals and inflation as well as an index of leading economic indicators. The Reserve Bank of Australia is to publish its financial stability review.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect AUD/USD. The guide begins on Tuesday, as there are no such events on Monday.
Tuesday, September 28
The U.S. is to publish data on consumer confidence, a leading indicator of consumer spending, which accounts for approximately 70% of all economic activity. The country is also due to release industry data on house prices as well as a report on manufacturing activity in the Richmond area.
Wednesday, September 29
In the U.S., President of the Federal Reserve Bank of Boston Eric Rosengren is due to speak on the nation’s economy. His comments will be closely scrutinized for any clues to the future direction of monetary policy. The country is also to produce data on crude oil inventories.
Australia is to publish an index of leading economic indicators, designed to predict the future direction of the economy as well as data on new home sales.
Thursday, September 30
The U.S. is to release final data on its gross domestic product, the leading indicator of economic growth. The country is also due to produce key data on initial jobless claims and manufacturing activity in Chicago.
Later in the day, Federal Reserve Chairmen Ben Bernanke is expected to deliver a speech on the U.S. economy. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
Australia is due to release official data on building approvals, and private sector credit while the Reserve Bank of Australia is to publish its financial stability review, an assessment of conditions in the financial system and potential risks to financial stability.
Friday, October 1
The U.S. is to round up the week by producing key data on personal spending and income, while the University of Michigan is to release revised data on consumer sentiment and inflation expectations. The country is also to release official data on manufacturing conditions, total vehicle sales and construction spending.
Also Friday, Australia is to release official data on commodity prices, a leading inflationary indicator.