AUD/USD Fundamental Analysis January 6, 2015 Forecast

Analysis and Recommendation:

The AUD/USD took its clues from the US dollar this morning. The US dollar rallied as traders listened to a slew of Federal Reserve speakers, who have all shifted into high gear preparing the markets for interest rate increases in the near term. The Aussie fell 34 points to trade at 0.8057 making the RBA happy as they think the Aussie should only be valued around 75 cents. The drop in the currency is also offset by falling Chinese manufacturing data which will mean lower exports.  The Aussie is trading at a 5 year low.

A combination of weak commodity prices and a surging US dollar were weighing on the local currency. The key theme in the new year has been US dollar strength and falling iron ore and coal prices. The lower Australian dollar will benefit local producers.

Late last year, major banks cut their Australian dollar forecasts against the greenback to reflect this recent strength. Currency analysts at Australia’s biggest bank now expect the Aussie to fall to 78 cents by the end of March, down from a previous forecast of 86 cents.

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.

Today’s economic releases actual vs. forecast:

 

Upcoming Economic Events that you should be monitoring:

Tuesday, January 6^th

Government Bond Auction

Date                                  Country              Auction