AUD/USD Fundamental Analysis – August 17, 2015 – Forecast

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Published: Aug 14, 2015, 04:50 UTC

Analysis and Recommendation: The AUD/USD added 8 points as markets recovered after an unusual public address by the PBOC which laid aside fears of the

AUD/USD Fundamental Analysis – August 17, 2015 – Forecast

Analysis and Recommendation:

The AUD/USD added 8 points as markets recovered after an unusual public address by the PBOC which laid aside fears of the drop in the value of the Chinese commodities. This morning RBA Gov Kent spoke and assured markets that these were short term effects and that the Aussie economy would rebound with little damage from this short term volatility.

Iron ore has broken a run of three straight red sessions, climbing overnight amid concerns about a supply bottleneck.

At the end of the latest session, benchmark iron ore for immediate delivery to the port of Tianjin in China was trading at $US56.20 a tonne, up 0.7 per cent from $US55.60 a tonne in the prior session. The move leaves it just US20c shy of a one-month high.

The gain was driven by news of a catastrophic explosion in Tianjin, with traders making bets the disaster could upset supply into China, the world’s largest iron ore consumer.

A fresh batch of US data has hinted at steady growth in the world’s largest economy, a welcome distraction from concerns relating to a significant devaluation of the yuan this week.

US retail sales lifted 0.6 per cent in July, in line with market expectations and ahead of last month’s result. It came alongside an upward revision in the June data from -0.3 per cent to an unchanged reading.

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	Core Retail Sales (QoQ)	0.1%	0.7%	2.5%
NZD	Retail Sales (QoQ) (Q2)	0.1%	0.5%	2.3%
AUD	RBA Assist Gov Kent Speaks

Upcoming Economic Events that you should be monitoring:

Monday, August 17, 2015

Cur.	Event	Actual	Forecast	Previous
JPY	GDP (QoQ) (Q2)		-0.5%	1.0%
JPY	GDP (YoY) (Q2)		-1.9%	3.9%
EUR	Trade Balance (Jun)			18.8B
USD	NY Empire State Manufacturing Index		5.00	3.86
CAD	Foreign Securities Purchases (Jun)			-5.45B