AUD/USD Fundamental Analysis – August 4, 2015 – Forecast

By:

Published: Aug 3, 2015, 03:51 UTC

Analysis and Recommendation: The AUD/USD dipped 5 points after weak Chinese manufacturing data weighed on the currency. The AUD is trading at 0.7303

AUD/USD Fundamental Analysis – August 4, 2015 – Forecast

Analysis and Recommendation:

The AUD/USD dipped 5 points after weak Chinese manufacturing data weighed on the currency. The AUD is trading at 0.7303 recovering a few points after the currency fell below 0.7300. Pressure is unlikely to ease early this week as Chinese data showed a slowdown in factory activity in July. The manufacturing PMI, released over the weekend, came in at 50, down from 50.2 and below expectations.

The number is right at the point that separates contraction from expansion. In more positive news, the non-manufacturing PMI rose marginally from 53.8 to 53.9 in July. Analysts said the relatively weak reading in the official China Manufacturing Purchasing Managers’ Index reflected a continuing trend of weak demand at home and abroad, a battered property sector and added pressure from a swooning stock market.

But economists also said that the government has vowed to press ahead with its accelerated spending on infrastructure to offset the difficulties as the economy struggles to gain traction.

“Economic momentum is still very fragile,” Haibin Zhu, economist at J.P. Morgan, said.

He said that government-sponsored investment is likely to continue to be relatively strong, helping support the economy.

China’s official manufacturing purchasing managers index slipped to 50.0 in July from 50.2 in June, the National Bureau of Statistics said Saturday. A reading of 50 is right at the cutoff point between expansion and contraction compared with the previous month.

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
	Canada – Civic Holiday
CNY	Caixin Manufacturing PMI (Jul)	47.8	48.3	48.2

Upcoming Economic Events that you should be monitoring:

Tuesday, August 4, 2015

Cur.	Event	Actual	Forecast	Previous
AUD	Retail Sales (MoM) (Jun)		0.5%	0.3%
AUD	Interest Rate Decision (Aug)		2.00%	2.00%
GBP	Construction PMI (Jul)		58.4	58.1