AUD/USD Fundamental Analysis December 5, 2012 Forecast

Analysis and Recommendation:

The AUD/USD climbed to 1.0439 after the RBA decreased rates again today, and also building approval and current account printed on the negative side. Traders are surprised to see the Aussie continue to climb. Chinese data yesterday is helping to support the currency.  The RBA cut its key lending rate a quarter point, saying there’s a risk below-average global growth slows further while at home the labor market is subdued and capital spending on resources is peaking. The central bank lowered the cash rate to 3 percent from 3.25 percent to “help to foster sustainable growth in demand and inflation outcomes consistent with the target over time.”

Risks to the outlook for global growth “are still seen to the downside, largely as a result of the situation in Europe, though the uncertainty over the course of US fiscal policy is also weighing on sentiment at present,” governor Glenn Stevens said in a statement.

That’s the first time he’s made mention of the US fiscal position since his August 2 statement last year, when the US Congress stalled on agreeing to lift the debt ceiling and America’s credit rating got downgraded. Republicans and the White House are again at odds as the deadline looms for the fiscal cliff, which could stall the world’s biggest economy.

In Australia, most indicators suggest economic growth is running close to trend, with large increases in capital spending in the resources sector and “weaker conditions” in other sectors

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 4, 2012 actual v. forecast

 

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

Government Bond Auction

Date Time Country 

Dec 05 09:30 Spain 

Dec 05 10:30 Germany 

Dec 05 11:00 Norway 

Dec 05 15:30 Sweden 

Dec 06 01:30 Japan 

Dec 06 09:50 France 

Dec 06 16:00 US 

Dec 07 16:30 Italy