AUD/USD Fundamental Analysis – August 28, 2015 – Forecast

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Published: Aug 27, 2015, 04:45 UTC

Analysis and Recommendation: The AUD/USD gained 10 points in the morning session as the dollar eased a bit. Stress continued to ease China pumped more

AUD/USD Fundamental Analysis – August 28, 2015 – Forecast

Analysis and Recommendation:

The AUD/USD gained 10 points in the morning session as the dollar eased a bit. Stress continued to ease China pumped more money into the banking system. The pair is trading at 0.7128. China’s slump is shaking the world economy, turning a country long seen as a growth engine into a possible threat.

The slowdown started as a side effect of the Communist Party’s plan to steer the world’s second-largest economy to a “new normal” of lower, steadier growth. It has turned into a nose dive that the party is struggling to reverse.

The party’s plans call for keeping economic growth close to 7 percent this year while China shifts from reliance on trade and investment to more self-sustaining growth based on domestic consumption.

Exports were supposed to grow by 6 percent this year, but instead they are shrinking. Factories are shedding millions of jobs, threatening to inflame political tensions. New industries, including e-commerce, are growing but still are too small to offset job losses in traditional businesses.

Regardless, investors again appear to be focusing on the positives as US economic data continue to impress, with a surge in US durable goods orders the latest number to excite market-watchers.

New orders for durable goods jumped 2 per cent in July, against a forecast for a meagre 0.1 per cent gain. The number was made more impressive by news of an upward revision in the June reading, with the report hinting US manufacturing is finally emerging from its winter slumber.

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
AUD		Private New Capital Expenditure	-4.0%	-2.5%	-4.7%

Upcoming Economic Events that you should be monitoring:

Friday, August 28 2015

Cur.	Event	Actual	Forecast	Previous
JPY	Household Spending (YoY) (Jul)		1.3%	-2.0%
JPY	Household Spending (MoM) (Jul)		2.2%	-3.0%
JPY	National Core CPI (YoY) (Jul)		-0.2%	0.1%
JPY	Tokyo Core CPI (YoY) (Aug)		-0.2%	-0.1%
JPY	Retail Sales (YoY) (Jul)		1.1%	0.9%
CHF	GDP (YoY) (Q2)		0.9%	1.1%
CHF	GDP (QoQ) (Q2)		-0.1%	-0.2%
EUR	Spanish CPI (YoY) (Aug)		-0.1%	0.1%
EUR	Spanish HICP (YoY) (Aug)		-0.2%	0.0%
GBP	Business Investment (QoQ)		1.7%	2.0%
GBP	GDP (QoQ) (Q2)		0.7%	0.7%
EUR	German CPI (MoM) (Aug)		-0.1%	0.2%
USD	Core PCE Price Index (MoM) (Jul)		0.1%	0.1%
USD	Goods Trade Balance (Jul)			-62.26B
USD	Personal Spending (MoM) (Jul)		0.4%	0.2%
CAD	RMPI (MoM) (Jul)		-4.0%	0.0%
USD	Michigan Consumer Expectations			83.8