The Australians will be hoping for a change in form this week, after the Australian dollar reached eight-year lows throughout last week. There is hope for positive news from the Consumer Price Index (CPI) data to be released on Wednesday, which is predicted to be 0.6% better than last month. However, it is possible that a turnaround in the Chinese economy may well be required before we notice any significant change in direction for the Australian dollar.
Will Chinas growth return?
Although the Chinese economy is growing, there is some disquiet because Fridays Flash Manufacturing Purchasing Managers Indices for July, although expected to be better than last month, is still expected to be in negative territory, which is indicative of an economy struggling.
Some growth for Canada?
Today sees the release of Canadian Wholesale Sales Data, which is expected to show limited growth. More encouraging than this is the prediction that Thursday’s core Retail Sales Data will be positive this month, after coming out negative last month, and this may improve the currency’s position.
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