Jump in to know the key market events and trading ideas for this week!
AUD: up for a rise?
Australian Quarterly Private Capital Expenditure will be announced at 02:30 MT time on Thursday.
Instruments to trade: AUD/USD, AUD/JPY, AUD/NZD, AUD/CHF
Another interesting indicator that deserves attention is the Australian Private Capital Expenditure. It is released on a quarterly basis and reflects the total value of new capital expenses made by private enterprises. While not as eloquent in the economic context as the primary indicators, it is a first-hand signal of market changes. “First-hand” here does not only mean the objectivity of this figure, but also the fact that it often comes as an early precursor and an alert of significant economic trends. Logically, private businesses have all there is at stake, they react first if something looms and change their investment plans accordingly. Therefore, if the capital expenditures decline, it reflects a gloomy economic outlook for Australian businesses. On the other hand, if they choose to invest more, it means they are confident that the future holds positive outcomes.
- If the indicator comes higher-than-expected, that will support the AUD;
- If the indicator is lower, the AUD may fall.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The British monthly GDP is announced on Friday at 09:00 MT time.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!