Weekly Fundamental Australian Dollar Forecast: Nothing to Like, No Saving Grace
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Fundamental Forecast for the Australian Dollar: Bearish
The third week of July brings about a quieter economic calendar for Australia; there are zero ‘high’ rated events on the DailyFX Economic Calendar.
The Citi Economic Surprise Index for Australia, a time-decay measure of data momentum, closed the week at +35.8, slightly lower than its closing level last week at +38.2.
Australian Dollar’s Tough Week
Nothing good is going on down under. Even though July typically brings about a better performance for the Australian Dollar, it has not showed. The Australian Dollarfinished the week at its weekly lows, monthly lows, and yearly lows. And its performance showed: AUD/JPY dropped by -1.33%; AUD/USD by -1.32%; EUR/AUD added +0.65%; and GBP/AUD gained +0.34%. Renewed lockdowns in the face of already sputtering economic data has left the Australian Dollar without any positive catalysts i
FX Week Ahead - Top 5 Events: BOE & RBA Meetings; Canada, New Zealand, US Jobs
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FX Week Ahead Overview:
The first week of a new month brings about the usual smattering of ‘high’ rated event risk from around the globe.
The global economic recovery from the coronavirus pandemic is in focus, with two central bank meetings and three major labor market reports (including April US NFP).
Overall, recent changes in retail trader positioning suggest that the US Dollar still has a mixed bias.
05/04 TUESDAY | 04:30 GMT | AUD Reserve Bank of Australia Rate Decision
The RBA’s May meeting may come and go without many surprises, given the recent tone that’s been established over the course of many weeks and months. But the fact of the matter is that the RBA still has some QE allocated henceforth, and there may be some language around the timing of bond purchases later this year. Absent that, however, the RBA may offer some light jawboning around the Aussie itself, which