The AUD is Holding

The AUD Looks to RBA, GDP and Retail Sales

Posted Monday, May 31, 2021 by
Rowan Crosby • 1 min read

Aussie traders have a busy week of data ahead, with the RBA being the main data point of interest.

However, as we have seen with most central banks around the world, we are unlikely to get any changes ahead. However, there will be a lot of interest in the accompanying statement in terms of where the outlook for monetary policy is headed.

As we know, inflation is surging around the world and Australia is no different. Similarly, we’re seeing house prices being inflated as are other key asset classes. While this isn’t the focus of the RBA as such, they must address the issue that there is a disconnect between what the official inflation numbers suggest and what the reality of the situation is. Some are suggesting this will force the RBA to hike.

We will also get GDP this week and retail sales, and slowly but surely the numbers are on the improve.

This morning, we also saw the latest manufacturing PMI from China which came in just a touch below expectations at 51.0, in what was basically in line with what we saw last time around.

Looking at the charts now, we have been stuck in this range for quite a while now and so far 0.7700 has managed to provide strong support. Equally, 0.7800 has been offering up solid resistance. With that being the case, trading this range is a fair strategy in the AUD/USD until proven otherwise.

We did see a big test of 0.7700, but it was really just a spike and we consistently see price closing within that range for the time being.

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