AUD/USD Fundamental Forecast – August 31. 2016

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Published: Aug 30, 2016, 04:48 UTC

The AUD/USD recovered a few points but gains were limited due to the continued climb in the US dollar. After yesterday’s disappointing housing data,

AUD/USD Fundamental Forecast – August 31. 2016

The AUD/USD recovered a few points but gains were limited due to the continued climb in the US dollar. After yesterday’s disappointing housing data, building permits today soared well above expectations. This is sometime just the flow from the purchase of a new home, through the building process and the sale after construction is completed. The number of houses approved rose 0.2 per cent in July 2016, in trend terms, and has now risen for eight months, according to data released by the Australian Bureau of Statistic.

Home approvals increased in July in New South Wales by 2.4 per cent and Victoria but decreased in Tasmania, Northern Territory, Australian Capital Territory, and Queensland.

In trend terms, approvals for private sector houses fell 0.5 per cent in July. Private sector house approvals fell in South Australia by 1.6 per cent.

The Aussie is trading at 0.7571 well below its highs just a week ago. As traders continue to interpret Fed comments the greenback has continued to climb.

The US Dollar index pared back all of yesterday’s gains in early trading but then reversed course and rallied as markets look to be steadily adjusting into a holding pattern as they await the non-farm payrolls report on Friday,

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August 31, 2016

Country	Event	Volatility	Previous
GBP	Gfk Consumer Confidence	2	-12
JPY	Industrial Production	2	-1.5
JPY	Industrial Production	2	2.3
AUD	HIA New Home Sales	2	8.2
CHF	UBS Consumption Indicator	2	1.34
EUR	Unemployment Rate s.a.	3	6.1
EUR	Unemployment Change	3	-7
EUR	Unemployment	2	11.6
EUR	Unemployment Rate	2	10.1
EUR	Consumer Price Index	3	0.2
EUR	Consumer Price Index – Core	3	0.9
USD	ADP Employment Change	2	179
CAD	Gross Domestic Product Annualized	2	2.4
CAD	Gross Domestic Product	2	-0.6
USD	Chicago Purchasing Managers’ Index	2	55.8
USD	Pending Home Sales	2	1
USD	Pending Home Sales	2	0.2