No, not breaking news of a Aussie heist but a week where two Australian banks tease the markets with subtle hints and tips that will send them into a mini frenzy followed by data about job creation and job losses Down Under.
Monday 12th 11.30pm – Reserve Bank of Australia speech
Christopher Kent, the Assistant Governor responsible for economics, is due to speak at the Bloomberg breakfast address, in Sydney. Traders will be interested as he often drops hints about potential policy changes.
Tuesday 2.30am NAB Business Confidence
Just a few hours after the RBA point the way about future economic policy, the National Australia Bank (NAB) release a figure indicating the current state of the health of the economy. Above 0 is good, below 0 means things are looking less rosy. Based on a survey of around 350 businesses, traders use it as an early warning signal of impending growth or contraction in the economy.
Wednesday 10.50am Reserve Bank of Australia speech
Another assistant governor, another speech. This time Guy Debelle is going to talk at the TradeTech FX Europe Conference in London. Responsible for advising RBA Board members about the financial markets, Guy may confirm hints dropped by Chris Kent on Monday or confuse matters by seeming to contradict him. Either way, traders will be listening with bated breath and give our players the chance to ride some volatility. At times like this, the markets feel a bit like the rodeo, but with less chances of a broken bone.
Thursday 2.30am Employment Change and Jobless Rate
Employment Change: vital economic data released shortly after the month ends, last month’s 26.2K change is forecast to drop to 15.2K and the markets may not like it. Fewer new jobs may mean less cash sloshing around the economy and a tightening of belts across the country. This isn’t good for any economy so this early announcement can pack a punch.
Unemployment Rate/Jobless Rate: this has been steady at around 5.7/5.8% since March but any change can impact the markets, especially if fewer new jobs were created at the same time. More people laid off and fewer people finding jobs means less ringing of the tills in the shops, and this has a dampening effect on the economy. Traders will want to know if the steady forecast 5.7% comes true.