Disappointing Chinese date is weighing heavily on Australian dollar sentiment. New vehicle sales and RBA minutes scheduled for Sunday/Monday respectively. Disappointing data and dovish minutes will compound negative investor sentiment, and could drive the AUD/USD towards January lows. Positive data and hawkish minutes would likely create some short term strength in the AUD/USD, but may not be enough to reverse the longer term downtrend. Keep in mind the reason the Australian Dollar had such a miserable week is because of the nation’s reliance on China. Roughly 40% of Australian exports go to China. Also being released next week is RBA minutes. A dovish release combined with bearish new vehicle sales would stir up negative sentiment and drive the pair closer to 0.8924.
Written by Daniel Elo, www.EconomicCalendar.com
