News and economic event analysis disclaimer: This fundamental report is not advice or a recommendation to trade or invest, it is educational and general information only. Don’t blindly buy and sell the markets/products discussed in this article, do your own research and be aware of the risks and rewards.
AUD Main Focus This Week:
- Economic Data Type: Building Approvals
- Server Time: 01:30, Tuesday
- Quick view: It’s an excellent gauge of future construction activity because obtaining government approval is among the first steps in constructing a new building. Construction is important because it produces a wide-reaching ripple effect – for example, jobs are created for the construction workers, subcontractors and inspectors are hired, and various services are purchased by the builder. Forecasted is 0.1%, higher than previous -15.5% released on 3rd May 2019.
- Economic Data Type: Private Capital Expenditure
- Server Time: 01:30, Thursday
- Quick view: Domestic government spending and borrowing levels can have a significant impact on the economy – increased spending generates work for contractors and creates jobs, while borrowing levels impact the nation’s credit rating and provide insight into the nation’s underlying fiscal position. Forecasted is 0.5%, lower than previous released data 2.0% February 2019.
Quick View: Dovish
- Reserve Bank of Australia (RBA) maintains interest rates in Australia as expected by 1.50% with a hawkish statement.
- The next RBA meeting was on 4 June 2019.
- The RBA central bank’s economic data is Gross Domestic Product, Unemployment and Consumer Price Index.
- Policy makers are confident that the annual inflation of 2019 will hit about 2% following the recent increase in oil prices.
Main Economics Data of RBA
- Australia’s GDP data grew by 2.3% in the fourth quarter of 2018, down from 2.8% in the previous quarter.
- Australia’s consumer price inflation slowed to 1.3% in the first quarter of 2019 from 1.8% in the previous quarter and below the 1.5% target.
- The adjusted unemployment rate in Australia rose to 5.2% in April 2019 from a 5.1% increase in the previous month and slightly above the market expectation of 5.1%.
Expected Bias: AUD Bearish
- The RBA reduces GDP growth forecast of 2019 to 2.75% from an earlier estimate of 3% amid uncertainty arising from household consumption and falling real estate prices.
- The unemployment rate rose to 5.2% from 5.0%.
- Reserve Bank of Australia will consider cutting interest rates at a June meeting, Governor Philip Lowe said in his speech.
- Trade tensions between the United States and China are rising.