AUD/USD Weekly Fundamental Analysis – April 18-22, 2016 -Forecast

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Published: Apr 16, 2016, 04:32 UTC

The AUD/USD remained strong supported by better than expected Chinese data over the week. The Aussie is trading at 0.7725 seeing a gain of 2.25% this

AUD/USD Weekly Fundamental Analysis – April 18-22, 2016 -Forecast

The AUD/USD remained strong supported by better than expected Chinese data over the week. The Aussie is trading at 0.7725 seeing a gain of 2.25% this week. The US dollar index, which measures the greenback against a basket of currencies, has picked up from a six-month low this week on speculation the currency may have sold off enough given the Federal Reserve is planning to raise interest rates at some stage. The Aussie dropped further today after the central bank of Singapore, MAS, which drives monetary policy decisions via the Singapore dollar, eased policy for the third time in 15 months to ‘neutral’, sending a signal to financial markets that the city-state sees a dimmer outlook for its own economy and global growth.

The Australian dollar rose after a report yesterday showed the jobless rate unexpectedly dropped to the lowest level in two-and-a-half years in March and employment rose more than forecast. The report came after upbeat Chinese trade data this week suggested Australia’s largest trading partner may be reducing its stockpiles, stoking optimism about a pick-up in the Australian economy and prompting traders to pull back their bets for potential future interest rate cuts.

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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.

AUD/USD daily chart, April 15, 2016

Major Economic Events for the week:


	Cur.	Event	Actual	Forecast	Previous
Monday, April 18, 2016
	NZD	CPI (QoQ) (Q1)		0.1%	-0.5%
Tuesday, April 19, 2016
	EUR	German ZEW Economic Sentiment (Apr)		8.0	4.3
	USD	Building Permits (Mar)		1.200M	1.177M
Wednesday, April 20, 2016
	GBP	Average Earnings Index +Bonus (Feb)		2.3%	2.1%
	GBP	Claimant Count Change (Mar)		-10.0K	-18.0K
	USD	Existing Home Sales (Mar)		5.29M	5.08M
	USD	Crude Oil Inventories			6.634M
Thursday, April 21, 2016
	GBP	Retail Sales (MoM) (Mar)		-0.2%	-0.4%
	EUR	Interest Rate Decision (Apr)
	USD	Philadelphia Fed Manufacturing Index		8.0	12.4
Friday, April 22, 2016
	EUR	German Manufacturing PMI (Apr)		51.0	50.7
	CAD	Core CPI (MoM) (Mar)		0.3%	0.5%
	CAD	Core Retail Sales (MoM) (Feb)		-0.5%	1.2%