Will Aussie pick a direction now? A busy week features the rate decision and the GDP report.
Major events in the coming week:
- MI Inflation Gauge: Monday, 1:00. After a rise of 0.5% in April, a slower pace may be seen now.
- Retail Sales: Monday, 1:30. A rise of 0.3% is now expected in this important economic gauge following 0.0% rise in March.
- Company Operating Profits: Monday, 1:30. This quarterly figure provides another view of the health of the economy. After a rise of 2.2% in Q4 2017, another increase of 3.1% is on the cards.
- ANZ Job Advertisements: Monday, 1:30.
- AIG Services Index: Monday, 22:30. The Australian Industry Group’s gauge for the services sector stood at 55.2 points in April, reflecting OK growth. A similar figure is likely.
- Current Account: Tuesday, 1:30. Australia’s current account deficit widened in Q4 2017 to no less than 14 billion. A narrower deficit of 9.9 billion is on the cards for Q1 2018.
- Rate Decision: Tuesday, 4:30. The Reserve Bank of Australia has not changed its interest rate since mid-2016, and is expected to hold the Cash Rate at 1.50%. The RBA has recently raised its growth forecasts but remains in no rush to increase rates.
- Michele Bullock talks Tuesday, 23:00. The RBA Assistant Governor will speak in Melbourne and may shed light on the recent RBA decision.
- Australian GDP: Wednesday, 1:30. The economy disappointed with a slow growth rate of 0.4% q/q in the last quarter of 0.4%. A pickup in activity is likely for the first quarter of 2018. A considerably stronger growth rate is forecast now: 0.8%.
- AIG Construction Index: Wednesday, 22:30.
- Trade Balance: Thursday, 1:30. Australia enjoyed three consecutive months of trade surpluses, March figure standing at 1.53. A more modest surplus of 1.03 billion is projected for April.
(All times are GMT)
