Colors: Orange Color

As part of joint efforts to foster a closer trading relationship and develop increased investment opportunities, the Central Bank of the UAE and the People’s Bank of China signed a bilateral currency swap agreement and an MOU to establish a Renminbi (RMB) Clearing Centre in the UAE in December 2015. Swaps through the Center grew consistently, increasing a further 42% in H1 2018, compared to levels recorded at end of 2017.

Currencies

Heikin Ashi suggest exhaustion in downtrend

Australian economic data has been tending to outperform relative to economists’ expectations. A similar outcome here could increase RBA rate hike bets. At the moment, overnight index swaps are pricing in a better than even chance of 55.1 percent that the central bank will raise rates in July 2019. The following week offers a plethora of event risk for the Aussie Dollar and we shall begin with domestic ones. On Wednesday, Australia’s second quarter inflation report will cross the wires.

Although market conditions in Abu Dhabi remain relatively unchanged this quarter, Q2 witnessed a major announcement by Sheikh Mohammed Bin Zayed introducing an economic stimulus package for Abu Dhabi to drive economic growth, outlines  JLL’s latest report. The three year Dh50 billion package should boost sentiment among key stakeholders and have a direct impact on the Capital’s real estate sector.