AUD/USD Fundamental Analysis December 26, 2013 Forecast

Analysis and Recommendation:

The AUD/USD continued to ease as traders pushed up the US dollar ahead of the holiday after sentiment shifted on a continues stream of positive eco data from the US. Traders will be seeing durable goods and new home sales before the markets close for the holiday. The AUD is down 23 points this morning at 0.8911. The Australian dollar has fallen as the currency consolidates after recent gains and investors prepare for the Christmas holiday.

The Australian dollar fell as low as 88.21 US cents last week, a three-and-a-half-year low, after the US Federal Reserve announced it would begin tapering its bond buying program in January.

That decision boosted the greenback. But the Australian dollar began regaining some ground this week as the US dollar lost some of its strength. ‘Essentially, the Australian dollar is consolidating the bounce it had on Friday night in New York where it moved away from the danger zone of further losses and fresh lows,’ Westpac senior currency strategist Sean Callow said.

‘It’s keeping some distance from those three-year lows, partly because the US dollar is not as strong as might have been expected in the wake of the Fed’s decision to reduce quantitative easing and the stronger-than-expected US gross domestic product reading on Friday.

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 24, 2013 actual v. forecast

 

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

Government Bond Auction

Date Time Country 

There are no major auctions scheduled for Christmas and New Year’s weeks.