AUD/USD Fundamental Analysis December 31, 2012, Forecast

Analysis and Recommendation:

The AUD/USD is trading at 1.0377 flat this morning. It was the Aussies weakest close since November 21, when the currency finished the domestic trading day at 103.56 US cents. The Australian dollar opened the first local session since the two-day Christmas and Boxing Day break at 103.71 US cents and remained under pressure throughout the day.

Treasurer Wayne Swan has warned the relatively strong Australian economy is still vulnerable to international pressures as the US stands on the edge of the so-called fiscal cliff. Mr. Swan says the budget drama unfolding in the US, combined with Europe’s economic woes, is having a “real impact” on the global economy. Down the line this has hurt Australia’s revenue base, a key factor which led the government last week to announce it was unlikely to deliver on its promised budget surplus.

Today should be more positive day for the global markets as the US seems to have finally made some headway with political leaders meeting with Mr. Obama today and a vote scheduled for Sunday.

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.

Markets will have a shortened day on Monday December 31^st and  most are closed on Tuesday January 1, 2013. Our analysis will be published as markets close on Monday and there will be no analysis on Tuesday. I want to wish all of my readers a happy and healthy new year. I hope you continue reading our analysis next year.

Economic Data December 28, 2012 actual v. forecast

 

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