A quiet week for Australian data this week with only ‘Private Sector Credit’ being released on Friday. That being said, there is a large amount on US manufacturing data being released today that could have an impact, should the figures be weak.
On the Sterling side of the GBP/AUD pair, there is the Inflation report on Wednesday and the potential revision of UK GDP from Quarter 1 on Thurdsay.
UK Inflation has raised of late to 2.7%, 0.7% above the Bank of Englands target. UK inflation is an important part of the Banks economic monitoring and requires attention. Should the Monetary Policy Comittee announce tomorrow any drastic plans to take hold of UK Inflation then we may see Sterling weakness. I don’t believe that Sterling will weaken below 1.63 but AUD sellers may find that there is a small buying opportunity.
UK GDP revision on Thursday doesn’t forecast any change from the 0.3% growth. The key point could be a revision of Q1 2012, as the word on the street is that it will be revised from a contraction of 0.1% to parity and therefore the UK never actually had a double dip recession. This is due to improved construction data from this period. Should this romour become reality then I would expect Sterling strength from Thursday.
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