The Reserve Bank of Australia (RBA) may raise interest rates on Tuesday, with focus also on Chinese trade and inflation stats. The UK economy is likely to have contracted in Q3, raising concerns about the strength of the British pound. The RBA decision will be closely watched, as recent developments in Australia suggest another rate increase is possible. However, there are concerns about a slowdown in economic growth and uncertainty in the Middle East. The Australian dollar is influenced by China news due to the close trading relationship between the two countries. Trade and inflation data from China will be closely monitored. The UK GDP numbers, to be released on Friday, are expected to show a contraction in the economy. Job losses and weak demand conditions are causing concern, which could impact the value of the pound. Producer prices and retail sales data in the euro area are also due this week.
