Next week will not see the release of top-tier US economic releases, like the NFP report, but will include some noteworthy survey data, including services ISM and Michigan consumer sentiment. Apart from that, a lot of attention will be on oil as Western sanctions on Russian seaborne crude are set to go live on Monday. Last but not least, the RBA is expected to hike rates to 3.0% or above for the first time since 2013. Be sure to watch US500, OIL and AUDUSD next week!
US500
Release of the US NFP report for November is already behind us and while data scheduled for next week is nowhere near as important as jobs data, some noteworthy survey data will be released. Services ISM index for November will be released today at 3:00 pm GMT while University of Michigan consumer sentiment index for December will see daylight on Friday, 3:00 pm GMT. Manufacturing ISM dropped into contraction territory in November and traders are eager to see how the services sector copes.
OIL.WTI
The week ahead could be interesting for oil traders as sanctions on Russian seaborne oil are set to go live today (Monday, December 5). There is still a lot of uncertainty over their impact on the oil market as well as how Russia will respond to countries embracing it. Russian officials warned that their country will not supply oil to countries that introduce limits on Russian crude but whether they follow on this promise remains a mystery as sanctions itself are seen as rather mild and ineffective. WTI price halted declines last week and climbed back above $80 per barrel.
AUDUSD
The Reserve Bank of Australia is set to announce its next monetary policy decision on Tuesday, 3:30 am GMT. Expectations for the next RBA move are mixed - economists see a 25 basis point rate hike while money markets price in only 15 bp of tightening for the upcoming meeting. Market odds were trimmed after inflation data for October came in below expectations. Nevertheless, even a 15 bp rate hike would put the main RBA rate at 3% - the highest level since April 2013. AUDUSD climbed to an almost 3-month high last week but the move was mostly driven by USD weakness rather than AUD strength.
