Services and Manufacturing PMIs are out on Wednesday at 11:30 MT time.
Will the RBA cut its rate?
The Reserve bank of Australia will announce its interest rate and release a statement on May 7, at 07:30 MT time.
The main question in focus will be whether the Reserve bank will cut its interest rate to 1.25% or not. Analysts mention the projections for lower GDP growth and inflation as the main reasons why the rate cut may happen. Others remember the positive figures for employment which may weight against the rate cut. They also expect the RBA to wait until the elections before making changes to the current interest rate. At the moment, the anticipation of the rate cut is priced in. If the interest rate remains at the same level, it will help the aussie to gain positive momentum.
• If the RBA is hawkish, the AUD will go up;
• If the RBA is dovish, the AUD will go down.
China's industrial rebound, progress in US fiscal stimulus and other important news in this article.
The market sentiment is mixed as investors weigh US stimulus package against the rising infections and worse-than-expected US unemployment claims. Jump in for fresh analysis of EUR/USD, USD/JPY, S&P 500 and gold!
US Initial jobless claims will be announced on Thursday at 15:30 MT time.