AUD/USD Fundamental Forecast – August 29, 2016

The AUD/USD climbed to 0.7630 adding 12 points as the US dollar eased. Commodity currencies are trading stronger while Asian equities decline ahead of Janet Yellen’s speech later in the day.  In spite of the robust release of core durable goods and unemployment claims data from the nation, the American currency traded on a flat note yesterday. Moreover, the markets will be looking for hints from Federal Reserve chair Janet Yellen regarding the Fed’s monetary plans, particularly the timing of a rate hike. FOMC members are expected to express their views in the days leading to the crucial meeting.

Westpac senior market strategist Imre Speizer said the Australian dollar was holding firm as it remains attractive to global investors, especially after UK and Japanese central bank easing.

“The RBA’s easing bias combined with the Fed’s tightening bias should push the Australian dollar lower towards 0.74 by year end, although recent BOE and BOJ easing have made the currency even more attractive to global investment flows such that a test of 0.78 is possible first,” he said.

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August 29, 2016

Government Bond Auctions

Date Time Country Auction

Aug 25 18:00 US Holds 7yr note auction

Aug 26 10:10 Italy Holds zero coupon