Central banks will be in focus this week, in a relatively quiet schedule for local and international data.
The minutes from the RBA’s November meeting will be released on Tuesday. There’s also minutes from the recent meetings of the US Fed (Wednesday night) and ECB (Thursday night).
Global stocks dipped again on Friday night, with the S&P500 and pan-European STOXX600 indexes posting weekly falls of 0.6% and 1.3% respectively.
And the US dollar faced more resistance, amid lingering doubts about the smooth passage of the Republican tax-cut proposal through the house.
But while the USD dipped against most major currencies, it still gained ground against the beleaguered Aussie dollar which continued to edge lower after a sharp selloff late in Asian trade on Friday.
Here’s what to watch.
Minutes from the RBA’s meeting are scheduled for Tuesday (11:30am AEST), following a relatively neutral statement accompanying the bank’s interest rate announcement earlier this month.
Since then, the Aussie dollar has fallen by another 1.1% as quarterly wage growth data missed expectations, while house prices continue to cool.
There are also a number of RBA speakers to start the week, including Governor Philip Lowe who’ll make a speech in Sydney on Tuesday night called “Some Evolving Questions”.
Then on Wednesday the ABS has preliminary data for construction work done in September, giving an update on building activity which remains a key part of the domestic economy.
Here’s a calendar of this week’s domestic data schedule (via ANZ):
Markets will review the minutes from the US Fed’s November meeting for any changes in the bank’s inflation forecasts, but it’s unlikely there’ll be key changes to the near-term rates outlook with the Fed almost certain to raise rates again in December.
Thursday’s minutes from the ECB’s October meeting may provide more details around the exit strategy for QE, after ECB President Mario Draghi announced a reduction in the bank’s bond purchases but didn’t specify an end-date.
Later in the week there’s also October manufacturing PMI data for Europe (Thursday) along with the US and Japan (Friday), which will provide an update on global economic growth in light of the recent strength in PMI indicators.
In the UK, political developments will be in focus with the UK budget set to be handed down on Wednesday, while Friday marks a deadline date set by the EU for key commitments from the UK on Brexit talks, otherwise trade discussions may be delayed until March next year.
Here’s this week’s international calendar (also via ANZ):
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