“It seems the period of jawboning is behind us. He seems willing to trust the markets to resume selling Aussie if commodities remain weak.” The boost from a weaker currency is increasingly important for Australia’s economy as sliding commodity prices hurt corporate and government revenues at a time when the RBA is seen by some analysts as reluctant to lower its benchmark rate from a record low.
There will be no major data releases from Australia tomorrow, but we would still monitor commodity prices. In the US session Final GDP and Existing Home Sales figures are scheduled for a release. Analysts are forecasting 1.9% increase in GDP, while Existing Home Sales should show annual level of 5.32 million.
Figures to watch:
Final GDP (Tuesday 14:30)
Existing Home Sales (Tuesday 16:00)