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MACRO REPORT
The AUD/USD pair has bounced back following a bearish start to the week, gaining modestly in light of the latest macroeconomic data and a weaker US Dollar. At the time of writing, the pair hovers below the 0.70 handle, trading at 0.6984, up 0.41% as of late.
First off, a batch of China’s economic data released yesterday fuelled the AUD movement. Most noteworthy, China’s GDP printed 2.9% on an annual basis, higher than the forecast 1.6%. Although a decline from the prior quarter’s print of 3.9%, upbeat data bolstered a positive outlook for China’s economy in the coming year.
Additionally, Australia published Westpac Consumer Confidence for January, which indicated an upward trend for a second straight month, rising to 5% from 3% in December.
On the US front, the Empire State Manufacturing Index dropped significantly below the -8.70 forecast at -32.9 points. Against the backdrop of deteriorating US business activity due to a sharp decline in new orders and shipments, markets saw Wall Street and the US dollar tumble.
Looking ahead, markets are focused on the BOJ monetary decision and outlook report scheduled for release later today. Followed by US PPI and Retail Sales data due overnight.
KEY DATA TO WATCH
| Japan | – | BoJ Monetary Policy Statement | ||
| BoJ Outlook Report (YoY) | ||||
| BoJ Interest Rate Decision | ||||
| Eurozone | – | CPI (Dec) | ||
| CPI, n.s.a (Dec) | ||||
| PPI Input (Nov) | ||||
| United States | – | Core PPI (Dec) | ||
| Core Retail Sales(Dec) | ||||
| PPI (Dec) | ||||
| Retail Sales (Dec) | ||||