AUD/USD Fundamental Forecast – May 31, 2016

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Published: May 30, 2016, 04:30 UTC

The AUD/USD tumbled 17 points against the strength of the US dollar which gained 17 points in the morning session with the US dollar out on holiday.

AUD/USD Fundamental Forecast – May 31, 2016

The AUD/USD tumbled 17 points against the strength of the US dollar which gained 17 points in the morning session with the US dollar out on holiday. Federal Reserve chairwoman Yellen indicated on Friday that the bank was considering a rate increase soon. The Aussie is trading at 0.7164.

Hedge funds and other large speculators increased bullish bets on the dollar by 78,083 contracts in the week ending May 24, the biggest jump since November, to a net long position of 67,430, according to data from the Commodity Futures Trading Commission.

The Federal Open Market Committee will next meet June 14-15, when it will consider a second rate increase following seven years of near-zero borrowing costs that ended when they raised in December. The dollar has gained against all its major peers in May.

According to Business Insider a potential near-term rate hike from the US Federal Reserve, something that has seen the US dollar strengthen in recent weeks, saw FX traders continue to trim their bets looking for further Australian dollar strength.

According to ANZ, citing the latest Commitment of Traders report released by the US Commodity Futures Trading Commission (CFTC), net long Australian dollar positions held by leveraged investors fell by 12,700 contracts last week, or around $1 billion in dollar terms.

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:

Tuesday, May 31, 2016

Cur.	Event	Actual	Forecast	Previous
NZD	ANZ Business Confidence (May)			6.2
AUD	Building Approvals (MoM) (Apr)		-3.0%	3.7%
AUD	Current Account (Q1)		-19.5B	-21.1B
AUD	Private Sector Credit (MoM) (Apr)		0.5%	0.4%
EUR	CPI (YoY) (May)		-0.1%	-0.2%
EUR	Unemployment Rate (Apr)		10.2%	10.2%
USD	Core PCE Price Index (MoM) (Apr)		0.2%	0.1%
USD	Core PCE Price Index (YoY) (Apr)			1.6%
USD	Personal Spending (MoM) (Apr)		0.6%	0.1%
CAD	GDP (MoM) (Mar)		-0.1%	-0.1%
CAD	GDP (QoQ) (Q1)			0.2%
CAD	GDP Annualized (QoQ) (Q1)		2.9%	0.8%
USD	S&P/CS HPI Composite – 20 n.s.a. (YoY)		5.1%	5.4%
USD	Chicago PMI (May)		50.6	50.4
USD	CB Consumer Confidence (May)		96.0	94.2