AUD/USD Fundamental Forecast – May 27, 2016

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Published: May 26, 2016, 04:05 UTC

The AUD/USD gained 10 points on the weakness in the US dollar but gains were limited after a report showed that Private New Capital Expenditure was lower

AUD/USD Fundamental Forecast – May 27, 2016

The AUD/USD gained 10 points on the weakness in the US dollar but gains were limited after a report showed that Private New Capital Expenditure was lower than expected. The Aussie is trading at 0.7208. The Australian dollar was squeezed higher to US$0.7210, having recovered from a low of 0.7162 touched earlier in the session. Major resistance was found at 0.7228 with support at a three-month low of 0.7150 set on Wednesday.

The Aussie regained some ground after a mixed capital expenditure report included a slight upgrade to overall spending plans for the year ending June 2017. “Investment intentions are a little bit better than we had feared and in particular a pickup in services investment intentions is encouraging,” said Westpac’s Callow.

The dollar hit 95.616 at the dollar index in Wednesday’s session and was the highest point since late March. The dollar earned a fresh momentum after upbeat housing numbers came out, backing the Fed’s April meeting’s minutes that said a rate hike is plausible if the economic conditions are fair, Reuters reported. The latest data showed that new US single-family home sales surged to a more than eight-year peak in April and prices hit a record high.

However, there are still skeptics, who are not convinced of a June rate hike with markets taking only 38 percent chance of a move, according to CME’s Fed watch. Now all eyes are on Fed chair Janet Yellen’s speech on Friday to draw up some rigid conclusions on the rate hike plan.

FxEmpire provides in-depth analysis for each asset 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, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

Upcoming Economic Events that you should be monitoring:

Friday, May 27, 2016

Cur.	Event	Actual	Forecast	Previous
AUD	RBA Assist Gov Debelle Speaks
JPY	National Core CPI (YoY) (Apr)		-0.4%	-0.3%
JPY	Tokyo Core CPI (YoY) (May)		-0.4%	-0.3%
USD	GDP (QoQ) (Q1)		0.9%	0.5%
USD	GDP Price Index (QoQ) (Q1)		0.7%	0.7%
USD	Michigan Consumer Expectations		86.6	87.5
USD	Michigan Consumer Sentiment (May)		95.4	95.8
USD	Fed Chair Yellen Speaks
USD	Baker Hughes U.S. Rig Count			318