AUD/USD Fundamental Analysis December 24, 2012 Forecast

Analysis and Recommendation:

The AUD/USD continued to weaken following global currency markets as the US dollar once again picked up momentum as risk left the markets ahead of the holidays and on lack of progress on the US tax deadlines. With politicians deadlocked and the holiday season coming close, traders moved to safe havens or left markets booking profits. There is little in the way of eco data in the Asian-Pacific market today or Monday. The global focus will remain the US policymaker’s negotiations as time ticks by quickly.

Australia’s Treasurer Swan has downplayed expectations for a fiscal surplus in 2013, attributing weakness in tax receipts as a result of a challenged economic environment. However, S&P has released a bulletin stating that Australia’s AAA / stable rating will not be affected by the announcement. Inflows into AUD-denominated assets, including government bonds, are a key component of our strong AUD forecast. Other factors include relative central bank policy and exposure to commodity demand from China.

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 21, 2012 actual v. forecast

 

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

There are no eco events on the calendar for Monday, December 24 and markets will be closed on Tuesday December 25^th. Traders and politicians are expected to be out of their offices for the season with low volume and low volatility. The only global issue is the US fiscal deadline. I would like to wish all of my readers a safe and healthy holiday season and all the best in the new year.

Government Bond Auction

Date Time Country 

Dec 21 16:30 Italy  

Dec 26 01:30 Japan 

Dec 27 10:10 Italy  

Dec 28 10:10 Italy