Australian Dollar Faces Data Drought, RBA Silent so Covid Will Drive

Fundamental Australian Dollar Forecast: Neutral

  • There’s no first-tier Australian mercantile information this week, and 0 scheduled from a executive bank
  • The Australian Dollar looks expected to be stranded with tellurian cues
  • These have seen a arise delayed in a final dual weeks and this routine competence continue

The Australian Dollar contingency contend with a important miss of domestic mercantile events in a entrance week, that is expected to leave it in thrall to tellurian risk ardour and so, inevitably, to coronavirus headlines.

With 0 vital due from Australia’s executive statisticians or a executive bank, a Aussie’s fortunes will be tied to a predestine of other expansion correlated assets, such as vital batch markets and other commodity currencies.

To be certain all such markets have risen extremely from their contagion-inspired Mar lows. The blunt calming movement taken opposite an evident ‘credit event’ by a world’s financial authorities was behind many of this rise, with trillions of dollars of impulse affianced to sentinel off a arrange of implosion that took tellurian markets down in 2008.

However, a certainty of universe retrogression interjection to coronavirus lockdowns, and an ongoing approach of woeful practice data, has slowed this rise, with AUD/USD apparently stalled subsequent pivotal psychological insurgency during A$0.66.

AUDUSD draft

The subsequent financial routine preference from a RBA is not due until Jun 2. Current marketplace pricing as to what competence occur afterwards is on a blade edge, with an historic, quarter-percentage-point rebate in a Official Cash Rate to 0 favored, though usually just.

However, such slight pricing has been seen during a same stretch from RBA meetings in a final integrate of months, though a cut being delivered.

Still, a banking can wish for really small in a approach of financial support, though it’s frequency alone there. It’s some-more expected this week to be held instead between a now informed hostile army of rhythmical confidence during mercantile puncture from lockdown and worries that a routine will be distant from swift. With this in mind, along with a perfect unpredictability of Covid news flow, it’s got to be a neutral elemental call this week.

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— Written by David Cottle, DailyFX Research

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