Last week was a bullish week for the Australian Dollar for two major reasons. Firstly, a weakness of the US Dollar across board boosted the value of several of the major currency pairs. Secondly, the Retail Sales data released on Wednesday, January 10 showed a massive surprise to the upside, posting a 1.2% increase when economists had expected a contraction of 0.4%. The Aussie Dollar bulls seem to be getting set for a prolongation of the party if the domestic data for the week continues to push the AUD higher.
For this week, the key report to watch is the Australian Employment data. This is scheduled for release on Thursday, January 18, 2018 at 12.30pm Sydney time. The consensus is that there will be a decrease in the number of jobs added to 15,200 jobs, which will be a marked reduction from the previous month’s figure of 61,600 jobs. The unemployment rate is expected to remain static at 5.4%. If the numbers come out as expected, this will halt the party of the Aussie Dollar bulls. But if we see the kind of upside surprise that was seen last month, then the bulls will continue to party.
After years of maintaining low-interest rates, there is growing expectation that the major central banks will start to tighten rates. Thursday will also see a low-impact news item that showcases the inflation expectations. While not directly tradable, this piece of data will also provide some insight as to whether the Reserve Bank of Australia will put a 2018 interest rate increase on the table.
Aud/Usd Daily Supply & Demand Zones:
Aud/Usd 1H Supply & Demand Zones: