AUD/USD Fundamental Analysis December 10, 2012, Forecast

Analysis and Recommendation:

The AUD/USD  is fairly flat this morning trading at 1.0480 with a strong trade balance release this morning offsetting the strength of the US dollar. Stronger employment release as it continues its attempt to retrace its decline from mid September highs. Employment rose 13.9K in November, easily beating expectations of a flat print, though details were less solid given the decline in full time jobs.

Australia has posted its largest trade deficit since 2008, after widening less than expected in October, according to data from the Australian Bureau of Statistics. The data showed Australia’s trade deficit for the month of October expanded 47 per cent to a seasonally adjusted $2.088 billion.The result follows a downwardly revised deficit of $1.420 billion in September, from an initially reported $1.456 billion. Analysts had expected the October deficit to widen to $2.15 billion.

Economists at the International Monetary Fund have compiled figures backing the view that the Australian dollar is becoming a more important reserve asset for central banks.Central banks asset allocation decisions are important influences on financial markets because they are amongst the world’s largest investors. Dependence of foreign central bank support is not a problem for Australia, of course. If there is a problem, it’s that foreign central banks want Australian dollars too much, not too little.

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.

Economic Data December 7, 2012 actual v. forecast

 

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

Government Bond Auction

Date Time Country 

Dec 10 10:10 Norway 

Dec 10 10:10 Slovakia 

Dec 10 15:30 UK 

Dec 10 16:30 Italy  

Dec 11 09:30 Spain 

Dec 11 10:10 Greece 

Dec 11 10:15 Austria 

Dec 11 10:30 Belgium 

Dec 11 10:30 UK 

Dec 11 18:00 US 

Dec 12 10:10 Italy  

Dec 12 10:10 Sweden 

Dec 12 10:30 Swiss 

Dec 12 16:30 US 

Dec 13 01:30 Japan 

Dec 13 09:30 Spain 

Dec 13 10:10 Italy  

Dec 13 10:30 UK 

Dec 13 16:00 US 

Dec 13 18:00 US 

Dec 14 11:00 Belgium 

Dec 14 15:30 UK