Events that marked the week:
There were no data releases from Australia last week. The Australian Dollar has moved to test the highs set in 2017 as expected but technical positioning has started to warn of a possible reversal in the works. Negative RSI divergence points to ebbing upside momentum, hinting that buyers may be rejected near the 0.81 figure once again. Near-term support is at 0.7978, the 76.4% Fibonacci expansion. A turn below this barrier would mark a break of the uptrend from mid-December lows and expose the 61.8% level at 0.7887. Alternatively, a daily close above the 23.6% Fib expansion at 0.8081 targets the 38.2% threshold at 0.8159.
There were no data releases from Australia on Friday, with public holiday being celebrated. Australia Day is being marked around the nation, with around 13,000 people becoming citizens. But for some Indigenous Australians January 26 is a time of mourning, and protests are also taking place across the country. From boot-throwing competitions to citizenship ceremonies in Antarctica, here is how people are spending the day.
This week markets will be looking at:
NAB Business Confidence (Tuesday 1:30)
CPI (Wednesday 1:30)
Manufacturing PMI (Wednesday 4:00)
Building Approvals (Thursday 1:30)
