AUD/USD Fundamental Analysis – August 27, 2015- Forecast

Analysis and Recommendation:

The AUD/USD remains near its bottom but has been trading in the green after touching the 0.70 price level yesterday. The pair is back above adding 2 points to trade at 0.7132 but well below its long term trading range. The massive Chinese stimulus announced on Tuesday was enough to stop the decline of the Aussie but was not enough to give it much momentum as the Chinese manufacturing sector remains in contraction.  The Australian dollar has weakened amid waning risk aversion on the back of China’s stock market tailspin.

The Shanghai Composite was down almost 1.5 per cent at the open, after China’s central bank slashed its benchmark interest rate in a bid to prop up the collapsing stock market.

The release of Australian construction figures showed that the amount of completed work rose 1.6 per cent in the June quarter, which was better than the 1.5 per cent fall economists had expected.

The US dollar weakness is the only support that the Aussie has found to limit its declined. Between the Chinese pressure and the view that the US Fed will not delay an interest rate increase the greenback is trading well below its August trading range.

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:

 

Upcoming Economic Events that you should be monitoring:

Thursday, August 27, 2015

Government Bond Auctions

Date Time Country

Aug 25 00:00 UK Announces details of Jan 2021 gilt

Aug 25 17:30 Italy Announces details of BTP/CCTeu on 28 Aug

Aug 25 19:00 US Holds 2-year note auction

Aug 26 11:10 Italy Eur 3bn 0.15% Aug 2017 CTZ

Aug 26 19:00 US Holds 2-year FRN note auction

Aug 26 12:05 Norway Holds bond auction

Aug 26 19:00 US Holds 5-year note auction

Aug 26 19:00 US Holds 2-year FRN auction

Aug 27 11:03 Sweden Sek 0.5bn 0.125% I/L Jun 2019, Sek 0.5bn 1% Jun 2025 bonds

Aug 27 19:00 US Holds 7-year note auction

Aug 28 11:10 Italy Auctions BTPs/CCTeus

Sep 01 11:15 Austria Holds RAGB bond sale

Sep 01 00:00 UK Announces details of 3.5% 2045 Gilt

Sep 02 11:03 Sweden Holds bond auction

Sep 02 11:30 Germany Eur 4bn 0.25% Oct 2020 Bobl

Sep 02 11:30 UK Auctions new Jan 2021 Gilt

Sep 03 10:30 Spain Auctions Bonos/Obligaciones

Sep 03 11:10 France Auctions OATs

Sep 03 00:00 US Announces details of 3yr note on 08 Sep, 10yr note on 09 Sep

Sep 03 00:00 US Announces details of 10-year note on 09 Sep