Economic data in the spotlight.
In the week ahead, besides the latest earnings reports, we mostly have to check the economic calendar, where the critical data is due to publish and make it clearer how the economic recovery is going ahead, and should we still be worried about inflation or not. Let's check the essential data and the market expectations in the week ahead.
China Retail Sales and Industrial production- Monday 17
The only leading economy which kept growing through pandemic owes its steady rebound to its better consumer spending. Chinese consumer spending rebounding to its pre-pandemic level. A month ago, Chinese retail sales increased 34.2%, and industrial production was 14.1% stronger. We expect to see the same 25% increase in retail sales and a 10% raise for industrial production.
RBA Meeting Minutes - Tuesday 18
Same as other central banks, RBA also had no change in its monetary policy and interest rate. For the coming meeting also we are not expecting any changes in the interest rates. But it is possible to start tapering the asset purchasing in the second half of the year, as RBA already increased the GDP expectation and economic recovery. Aussie moves in a side movement, steady and above the critical level of 0.77. Any uptrend or downtrend in the long-term needs to break out the current range of 0.7655 and 0.7840.