AUD/USD Fundamental Analysis – July 2, 2015 – Forecast

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Published: Jul 1, 2015, 03:49 UTC

Analysis and Recommendation: The AUD/USD added 22 points against a strong US dollar after the release of strong Chinese data which helped support the

AUD/USD Fundamental Analysis – July 2, 2015 – Forecast

Analysis and Recommendation:

The AUD/USD added 22 points against a strong US dollar after the release of strong Chinese data which helped support the Aussie. The AUD climbed to 0.7726. HSBC had sponsored the various Purchasing Managers’ Indexes (PMIs) — for China, as well as for other Asian nations — for the last five years, but Markit said last week that the global bank was ending its role as sponsor. China’s official manufacturing PMI stood at 50.2 in June, unchanged from the previous month and just above the 50-mark that separates growth from contraction, data showed on Wednesday. A Reuters poll had expected a figure of 50.3.

“In general, the softness in the manufacturing sector remains, requiring more policy recalibration,” Liu Li-Gang and Zhou Hao, economists at ANZ, wrote in a note following the data.

China’s economy performed worse than expected in June, according to a closely-watched PMI survey compiled by HSBC, which indicated the country’s manufacturing sector contracted more than first thought. The result stands in contrast to the official PMI reading, released an hour ago, which stated that the manufacturing sector had grown for the fourth consecutive month, with a reading of 50.2 in June.

The two surveys often move slightly out of sync, usually attributed to methodology.

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:

Cur.	Event	Actual	Forecast	Previous
	Canada – Canada Day
	New Zealand – Queen’s Birthday
JPY	Tankan Large Manufacturers	15	12	12
JPY	Tankan Large Non-	23	22	19
CNY	Manufacturing PMI (Jun)	50.2	50.3	50.2
CNY	HSBC Manufacturing PMI (Jun)	49.9	49.6	49.6

Upcoming Economic Events that you should be monitoring:

Thursday, July 2, 2015

Cur.	Event	Actual	Forecast	Previous
GBP	Construction PMI (Jun)		56.5	55.9
USD	Nonfarm Payrolls (Jun)		230K	280K
USD	Unemployment Rate (Jun)		5.4%	5.5%