The week ahead has many a fundamental new release to look forward to, events which are sure to have traders licking their lips at the implied volatility and the numerous trading opportunities they create. Let us take a look at our top 3 picks:
Tuesday sees the release of the Australian Retail Sales m/m figure which shows the change in the total value of sales at the retail level within the economy in the previous month. This is the earliest look at consumer data for the month and year and will be scrutinised by investors who will look to buy the AUD if the figure beats expectations, implying greater consumer spending and thus a heating up pf the Australian economy. However, should the release be worse than expected, this would imply that the Australian economy is cooling downs with consumers holding onto their purse strings which would result in a deprecation of the Australian dollar.
With oil producing nations vowing to reduce the supply of crude oil in an attempt to prop up the price, Wednesdays US crude oil inventories will be watched by investors as they try and determine whether the US has reduced supply and/or whether the demand of crude oil has increased in the US. A release showing a lower number of crude in inventory will indicate that either the demand of crude oil has increase or that the supply has decreased, which would result in the price of crude oil increasing. However, a larger amount of crude in inventories will be read as either an increase in supply or a decrease in demand for the black gold which would result in a drop in the price of crude oil.
Friday sees the release of the US Prelim UoM Consumer Sentiment figure, which seeks to determine how the current consumer confidence in the US is compared to the previous month. Seeing that consumer confidence is directly related to consumer spending, a big component of economic health, a better than expected release will see the USD appreciate as markets price in greater spending and thus a heating up of the economy. However, should the figure miss expectations, we would see the USD depreciate as markets price in a reduction in spending and thus a possible cooling of the US economy.
The above are just the tip of the iceberg of the daily events which occur in markets, for daily technical and fundamental analysis please visit: https://www.opteck.com/fundamental-analysis/