AUD/USD Fundamental Analysis – August 14, 2015 – Forecast

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Published: Aug 13, 2015, 04:05 UTC

Analysis and Recommendation: The AUD/USD climbed off its bottom after China instructed its banks to buy up dollars to support the price of the yuan. The

AUD/USD Fundamental Analysis – August 14, 2015 – Forecast

Analysis and Recommendation:

The AUD/USD climbed off its bottom after China instructed its banks to buy up dollars to support the price of the yuan. The PBOC has leveled off the decline in the currency after it changes its daily setting process. The Aussie is now trading at 73.82 well of its recent bottoms.

The Australian dollar has rebounded overnight after Chinese authorities stepped in to halt the slide of the yuan, following two days of steep falls sparked by Chinese currency devaluations.

The Aussie’s recovery was fuelled by the US dollar falling 1 per cent, amid concerns the incoming US Federal Reserve interest rate rise may be delayed due to the yuan initiated increased volatility.

Widespread press reports attributed some of the pickup to a suspected intervention by the Chinese authorities in the last minutes of trading yesterday as the yuan looked on track to lose more than its 2 per cent daily limit.

The Australian dollar tumbled to its lowest level since 2009 after the Chinese central bank set the midpoint for its yuan at the weakest level since October 2012.

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 up to the data analysis and information in our weekly reports.

Today’s economic releases:

Cur.	Event	Actual	Forecast	Previous
NZD	Business NZ PMI (Jul)	53.5		55.2
GBP	RICS House Price Balance (Jul)	44%	42%	40%
AUD	RBA Assist Gov Kent Speaks

Upcoming Economic Events that you should be monitoring:

Friday, August 14, 2015

Cur.	Event	Actual	Forecast	Previous
NZD	Core Retail Sales (QoQ)		0.7%	2.9%
EUR	German GDP (QoQ) (Q2)		0.5%	0.3%
EUR	Core CPI (YoY) (Jul)		1.0%	1.0%
EUR	CPI (MoM) (Jul)		-0.6%	0.0%
EUR	GDP (QoQ) (Q2)		0.4%	0.4%
USD	PPI (MoM) (Jul)		0.1%	0.4%
CAD	Manufacturing Sales (MoM) (Jun)		2.1%	0.1%
USD	Industrial Production (MoM) (Jul)		0.3%	0.3%
USD	Michigan Consumer Sentiment (Aug)		93.5	93.1