The AUD is Weak

Daily Briefing, May 13 – Market Wrap & Key Economic Events to Watch Today

Posted Monday, May 13, 2019 by
Arslan Butt • 2 min read

Good Morning, traders.

I hope you had an amazing weekend, but now let’s get back to the trading world. In this update, we are going to discuss the economic calendar which is relatively quiet in terms of fundamental data releases. Before getting into the details, let us recall what’s going on in the market right now.

Market Wrap

  • Global markets have begun under pressure in the Asian session as the trade war between the US and China intensified further over the weekend.
  • POTUS (President of the United States) Donald Trump hiked the tariff rate to 25% on $200 billion of Chinese goods on Friday.
  • The following days could be critical as China’s Commerce Ministry announced that it would consider retaliation against the American tariff hike.
  • The US Consumer Price Index (CPI) soared 0.3% in April, following a 0.4% increase back in March 2019. Figures were weaker than expected, missing the forecasts calling for a 0.4% rise and this could keep the risk sentiment off.

What’s Next?

Looking forward to today’s sessions, we are set to listen from a couple of major central bankers in the form of the RBA Assistant Governor Guy Debelle and Fed Vice Chair Richard Clarida. But aside from these events, expect the financial market to trade in line with the sentiment and any further updates on the trade war.

AUD – RBA Assist Gov Debelle Speaks
At 7:00 GMT, the Reserve Bank of Australia Assistant Governor is due to participate in a panel discussion titled “The End of Libor and the Impact on Australian Financial Markets” at the RBA in Sydney.

As you know, he is responsible for directing Reserve Bank Board members who determine where to fix the nation’s key interest rates on matters associating to economics, and his public commitments are often used to leave clues about future policy shifts. I would recommend following the event as after New Zealand’s policy shift, Governor Gebelle may have something to offer.

USD – FOMC Member Clarida Speaks
The Federal Reserve Governor Richard Clarida is scheduled to deliver opening remarks at an event hosted by the Federal Reserve Bank of Boston at 13:10 GMT.

Now what makes this event interesting are the audience questions. The house will be open for questions and Governor Clarida may have to answer questions relating to the next policy shift. Any surprising answer can trigger fluctuations in the US dollar today.

CAD – Gov Council Member Lane Speaks
Likewise, Canadian Deputy Governor Timothy Lane is also due to participate in a panel discussion at the French Embassy, in Ottawa at 21:30 GMT today. I’m not expecting much from this event.

Well, that’s all we have on the economic calendar but the technical side is going to be interesting. Stay tuned to FX Leaders for fresh forex trading signals and trade ideas. Have a good week!

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