Australia

The macroeconomic publications were almost inexistent last week for the Australian economy. The only indicator that drew some attention was Private Sector Credit which stagnated at 0.2%. Reserve Bank of Australia’s governor, Glenn Stevens, did not mention anything about the monetary policy in his latest speech.

Next week the Cash Rate will be published, expected to be unchanged, followed by RBA Rate Statement. On Wednesday will be published HIA New Home Sales and Trade Balance (expected at -1.00B) and on Thursday Building Approvals and Retail Sales.

Australian dollar lost 0.26% last week in front of USD and did not manage to close, on a weekly time frame, over 1.046 level.

From the technical point of view doesn’t look too good. A shooting star was formed right at the resistance and might signal a reversal in the current up move. If RBA will cut the interest rate as a measure to help the economy, we might see a drop in AUDUSD to 1.0365 or under. This might happen also if the cash rate will be kept at 3% but the other economic indicators will disappoint the market.

The optimists think of a trend continuation if a weekly close would be over 1.0460. This can be achieved if the Australian economy will signal a recovery.