The Week Ahead – Central Banks and US Inflation in Focus

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From the Asia Pacific

For the Aussie Dollar:

It’s a particularly quiet week ahead on the economic data front, with stats limited to business confidence figures.

The NAB Business Confidence numbers for May are due out on Wednesday.

The main event, however, will be the RBA’s June monetary policy decision on Tuesday. The markets are expecting a 25-basis point hike. Anything more and a hawkish rate statement would support an Aussie Dollar breakout.

In the week, the Aussie Dollar rose by 0.63% to $0.7207. In the week prior, the Aussie Dollar increased by 1.73% to $0.7162.

For the Kiwi Dollar:

It’s also a quiet week ahead, with electronic card retail sales the only stat to consider. The markets will need to wait until Friday for the May figures, leaving the Kiwi Dollar in the hands of market risk sentiment early in the week.

The Kiwi Dollar slipped by 0.34% to end the week at $0.6510. In the previous week, the Kiwi Dollar rallied by 2.16% to $0.6532.

For the Japanese Yen:

On Tuesday, household spending will draw interest ahead of first quarter GDP numbers due out on Wednesday.

The numbers are unlikely to have a material impact on the Yen, however, with monetary policy divergence Yen negative.

The Japanese Yen slid by 2.96% to end the week at ¥130.88 against the dollar. In the week prior, the Yen ended the week up 0.59% to ¥127.12.

Out of China

Trade data will draw plenty of interest on Thursday ahead of inflation numbers on Friday.

Early in the week, the Caixin Services PMI for May will set the tone.

On Monday, the Chinese Yuan rose by 0.58% to CNY6.6603. The Yuan slipped by 0.10% to CNY6.6994 in the week prior.

Geo-Politics

Russia and Ukraine will remain the area of focus in the week ahead, along with chatter from China.



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