AUD/USD Fundamental Analysis – December 3, 2015 – Forecast

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Published: Dec 2, 2015, 05:32 UTC

Analysis and Recommendation: The AUD/USD dipped 12 points as the greenback recovered. The surprise is that Aussie GDP beat expectations while the currency

AUD/USD Fundamental Analysis – December 3, 2015 – Forecast

Analysis and Recommendation:

The AUD/USD dipped 12 points as the greenback recovered. The surprise is that Aussie GDP beat expectations while the currency declined. If anything it shows the weight of lackluster Chinese data is weighing on commodity currencies. The pair remains well above the 0.73 level its highest trading point in weeks. The Australian dollar touched its highest level in nearly seven weeks Wednesday after news of strong economic expansion, while shares in Hong Kong rose for a second-straight day on hopes for stimulus aimed at the Chinese property sector.

The Aussie dollar briefly hit 0.7342 against its U.S. counterpart earlier, its highest level since Oct. 15, after the Australian Bureau of Statistics said gross domestic product in the third quarter grew 0.9% quarter-over-quarter and 2.5% from a year earlier. The Aussie dollar has since pulled back to 0.7313 and was trading at 0.7321 late Tuesday in Asia. The economic expansion was due to a surge in commodity exports and was in line with economists’ forecasts.

The Australian dollar touched its highest level in nearly seven weeks Wednesday after news of strong economic expansion, while shares in Hong Kong rose for a second-straight day on hopes for stimulus aimed at the Chinese property sector.

With momentum already on its side, as well as the Reserve Bank of Australia’s decision to skip a chance on Tuesday to cut interest rates or talk down the currency afresh, the Aussie was further aided by data showing the economy grew 0.9 percent in the third quarter. That reinforced views that interest rates will not be cut in the near term.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Today’s economic releases:

Cur.	Event	Actual	Forecast	Previous
AUD	GDP (YoY) (Q3)	2.5%	2.4%	1.9%
AUD	GDP (QoQ) (Q3)	0.9%	0.8%	0.3%

Upcoming Economic Events that you should be monitoring:

Thursday, December 3, 2015

Cur.	Event	Actual	Forecast	Previous
GBP	Services PMI (Nov)		55.0	54.9
EUR	Deposit Facility Rate (Dec)		-0.30%	-0.20%
EUR	Interest Rate Decision (Dec)		0.05%	0.05%
EUR	ECB Press Conference
USD	Fed Chair Yellen Testifies
USD	ISM Non-Manufacturing PMI (Nov)		58.0	59.1