Yawn! The AUD/USD was rocked back and forth in a pretty quiet range last week. Will it wake up from its slumber and break out today? There are plenty of economic news that could jumpstart some action in this pair starting Tuesday.
The agenda for Tuesday includes CB leading index, NAB quarterly business confidence figures, and a speech by RBA Governor Glenn Stevens. No forecasts have been provided for the leading index and business confidence reading. The leading index has been up by 0.7% in the previous month while business confidence lingered in the negative territory at -24. If large improvements in these indicators don’t cause an upside breakout for the AUD/USD, then there might be something fishy going on…
Another potential breakout scenario could take place if RBA Governor Stevens starts talking about an end to the RBA’s monetary easing policies. Otherwise, the AUD/USD might be stuck in the same range as a pullback in equities and commodity prices could dampen risk appetite.
Data on the housing industry is due on Wednesday, when HIA new home sales report will be released. On Thursday, building approvals data is expected and this report should provide a pretty good picture of where the construction industry stands. Lastly, on Friday, MI inflation gauge and private sector credit data are due but these are expected to have minimal impact on price movement.