AUD/USD Fundamental Analysis January 1, 2013, Forecast

Analysis and Recommendation:

The AUD/USD is trading at 1.0398 adding 25pips this morning and looking to break above the 1.04 price to close out the year. With the US dollar bouncing up and down on news flow, Chinese data helped support a positive turn for the Asia Pacific region, with HSBC Manufacturing PMI reporting above 50 and above expectations showing a continued expansion in China.

The Australian dollar is higher, but trading in a tight range ahead of the New Year’s Day public holiday and amid uncertainty about a successful US budget deal. Negotiations between US President Barack Obama and legislators in the US Congress over a looming budget deadline look set to go down to the wire. Talks centered on the best way to avoid a series of tax hikes and spending cuts, which were tipped to push the US economy back into recession, coming into effect in early 2013.

The measures, dubbed the fiscal cliff, also have a significant knock-on effect on the world economy.

I would like to take this time to wish my readers a happy and healthy New Year and a year full of successful trading.

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 31, 2012 actual v. forecast

 

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

Upcoming Government Bond

Date Time Country 

Thursday, January 5: France will auction an estimated €7-8 billion ($9.1-10.4 billion) in 10-year and other long-term bonds 

Tuesday, January 10: Austria will auction €1.3 billion ($1.7 billion) in 5- and 10-year bonds

Thursday, January 12: Spanish 3- and 5-year bond auction

Friday, January 13: Italy will auction medium-long term bonds

Thursday, January 19: France will auction 5-year bonds

Thursday, January 19: Spanish 10-, 15-, and 30-year bond auction

Thursday, January 26: Italian long-term bond auction

Monday, January 30: Italian medium-long term bond auction

Monday, January 30: Belgian bond auction