Australian Dollar market focus has returned with a vengeance to domestic monetary policy prospects. It’s likely to stay there this week, which is bad news for resurgent bulls.
The outlook for the Euro-Zone economy remains gloomy and with fresh central bank stimulus on the way, the path of least resistance for the Euro remains lower.
Earnings season continues next week, but a series of central bank decisions will look to wrestle the market’s focus back to monetary policy.
The US Dollar seems more likely to rise than fall after the FOMC monetary policy announcement even as an interest rate cut is overwhelmingly expected.