AUD review

The Australian dollar rallied by as much as 2 percent on Thursday last week after strong Australian employment data helped reduce expectations of another interest rate cut from the RBA at its next meeting on May 5th. 

The AUD could find further support over coming days in reaction to China's move to inject more monetary easing into its economy this weekend. Chinese demand is important for the Australian economy. 

Before the release of meeting minutes from the RBA's April meeting on Tuesday morning, at 17:30 today RBA Governor Glen Stevens will be speaking. Markets will watch for any signals of a possible interest rate cut on May 5th plus any comments from Stevens about Australia needing a weaker currency. Neither of these signals could lead to AUD appreciation. Local inflation data on Wednesday morning will be another important update.