Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
AUD/USD: outlook for April 17-21
2019-11-11 • Updated
Aussie jumped to 0.7595 in the past week due to strong data out of Australia and Asia. The main focus was on the Thursday’s labor data from Australia that beat market expectation. China’s trade balance data showed a significant surplus exceeding the consensus forecast. Trump’s political decisions and public engagements weighed in on the US dollar and helped Aussie to receive substantial gains.
Next week the main focus will on the Reserve Bank of Australia’s monetary policy meeting minutes coming on Tuesday, and on the package of the US housing and manufacturing data. The meeting minutes will likely be a headwind for Aussie, as RBA policymakers removed any risk of higher interest rate over this year at their last meeting. On Thursday, pay closer attention to what US Treasury Secretary Steven Mnuchin will say about upcoming fiscal policies and border-adjustment tax. On Friday, traders will be focused on the FOMC member Kashkari’s speech striving to receive some reassurance in the Fed’s hikes and stronger USD.
Technically, the recent sharp rebound has scope to extend higher towards 0.7620 (near 50-day MA). A failure to test this level can lead to the rollback towards the nearest supports at 0.7550 and 0.7520 levels.
Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.
China's economy is rocketing. On the other hand OPEC+ countries take the decision to cut the production. What will be the impact on the oil price?
Get ready for some suspense as the Bank of Canada faces a tough decision on whether to raise interest rates or keep them on hold. The resilient Canadian economy and the goal of curbing inflation further are at the heart of this dilemma. While some money markets and economists predict another rate hike, others believe the central bank should exercise caution and wait, hinting at a possible increase later in the summer.
Let's take a closer look at Australia's recent economic performance. Brace yourselves for some interesting developments. The country's economy experienced its slowest growth since late 2021 in the first quarter, raising doubts about the Reserve Bank of Australia's rapid interest rate increases. Despite the bank's record-breaking 12 rate hikes in the last 13 months, the resource-rich economy only grew by a modest 0.2% in the quarter, falling short of economists' expectations.
Let's dive into the latest developments shaping the global economic landscape. Good news first: the threat of an unprecedented US debt crisis has receded, as US lawmakers passed a bill to raise the debt ceiling and avoid a catastrophic default. Phew! But don't pop the champagne just yet, because storm clouds are still looming. High inflation, rising interest rates, and sluggish growth are challenges that have yet to disappear.