AUD/USD Fundamental Analysis December 14, 2012, Forecast

Analysis and Recommendation:

The AUD/USD is trading at 1.0555 adding yesterday, but trading flat this morning. The US dollar weakened against all of its crosses yesterday after the US FOMC announced additional stimulus as expected increasing the Fed balance sheet to 4 trillion US dollar. The surprise came during Mr. Bernanke’s statement late in the day, where he informed the public that the Fed was adopting new guidelines and that future stimulus would be directly tied to unemployment and jobs creation and that the Fed would continue adding stimulus until the goal of 6.5% unemployment was reached. This is the first time the Fed has ever shared their goals and objectives and set long term conditions. This action was seen as a positive move by the Fed, also reduced the strength of the US dollar. Commodity currencies were the main beneficiary as traders continued looking for more risk.

Positive global sentiment also helped support the FX markets as traders saw progress in the EU as Ministers introduced the final plan for a bank supervisor, a goal which just a short time ago seemed impossible.

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 13, 2012 actual v. forecast

 

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

Government Bond Auction

Date Time Country 

Dec 14 11:00 Belgium 

Dec 14 15:30 UK