Author : Brett Gordon
The Australian market is set to jump today after Wall Street and Global stock-markets rallied on Friday, while bond markets sold-off and safe-haven currencies dipped at the expense of risk-sensitive ones.
The Australian Dollar is trading around 67 cents consequently. Interest rate cuts are always a topic for discussion. Market action is being dictated between what’s happening in the global economy right now and how central bankers will adjust policy to address that. A continued slowdown in economic growth comes into play to.
It’s a quieter week ahead on the data front following a relatively busy week last week.
After a quiet start to the week, July existing home sales are due out of the U.S on Wednesday. Any moves in response to the figures will likely be short-lived.The focus will then shift to prelim private sector PMI numbers and the weekly jobless claims figures due out on Thursday.
We expect the prelim service PMI to be the key driver, expect the Dollar to react to any dire manufacturing sector numbers.
On Friday, new home sales figures will also likely have a relatively muted impact on the Dollar.Outside of the numbers, the FOMC’s meeting minutes are due out on Wednesday and will likely have the greatest impact on the USD.
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