Out of Asia
For the Aussie Dollar:
Westpac consumer sentiment and employment figures will be in focus. While consumer sentiment is important, expect the employment numbers to be key. Another sharp pickup in hiring could force the RBA to reconsider its current stance on cash rates.
The Aussie Dollar rose by 0.36% to $0.7207.
For the Kiwi Dollar:
Business confidence figures for the 4th quarter get things started on Tuesday. We have seen business confidence wane recently, so the markets will be expecting some weak numbers.
Of greater significance will be electronic card retail sales figures due out on Wednesday.
At the end of the week, Business PMI numbers will also draw interest, however.
The Kiwi Dollar ended the week up by 0.37% to $0.6804.
For the Japanese Yen:
It’s a relatively quiet week ahead. Key stats are limited to trade data on Thursday and inflation figures on Friday. We don’t expect the numbers to move the dial, however.
On Tuesday, the BoJ also delivers its first monetary policy decision of the year. No surprises are expected…
The Japanese Yen rallied by 1.19% to ¥114.190 against the U.S Dollar.
Out of China
It’s a big week, with 4th quarter GDP numbers due out on Monday. Expect the numbers to set the tone for the week. Disappointing growth figures could bring into question market optimism towards the global economic outlook.
Other stats on Monday include fixed asset investments, industrial production, and retail sales figures. Barring dire numbers, however, these should have a limited impact on the markets.
On the monetary policy front, the PBoC will also be setting loan prime rates on Thursday.
The Chinese Yuan ended the week up by 0.39% to CNY6.3528 against the U.S Dollar.
Geo-Politics
Nothing new to consider in the week ahead, with China and Capitol Hill and Russia continuing to be the key areas of focus.
COVID-19
COVID-19 news updates will remain a key area focus. Risk aversion could hit should a new strain of the virus appear in a developed economy.
Corporate Earnings
It’s also corporate earnings season, with a number of big names releasing results that could test support for riskier assets.
Read More: The Week Ahead – Earnings, Central Bank Chatter and a Busy Economic