AUD/USD Fundamental Analysis June 5, 2013 Forecast

Analysis and Recommendation:

The AUD/USD is trading at 0.9714 down by 52 pips this morning as Chinese data continues to weigh on the currency. Ahead of the RBA rate decision due within an hour. Traders are expecting the RBA to hold rates and policy as Mr. Stevens has already indicated that two rate reductions in recent months lowered the value of the currency a significant amount. The Aussie gained one cent in early trading after a disappointing ISM manufacturing release in the US. The closely-watched ISM manufacturing Index showed the US manufacturing sector in May contracted at the fastest pace in four years. The data caused a sell-off in the US dollar, which boosted the Australian currency. As the dollar recovered from the harsh reaction its major crosses are showing corrections to the overreaction.

The Australian dollar fell 7.5 per cent in May, marking its worst monthly performance since September 2011. Much of the May decline was attributed to Chinese economic growth concerns and the RBA’s move to cut its key interest rate. This morning’s data showed an improvement in the Aussie Trade Balance. Trade balance data from the Australian Bureau of Statistics showed Australia’s trade deficit narrowed in the March quarter more sharply than analysts expected, falling by $6.249 billion. 

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 June 4, 2013 actual v. forecast

 

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

Government Bond Auction

Date Time Country 

Jun 05 09:30 Germany

Jun 05 14:30 Sweden

Jun 06 00:30 Japan

Jun 06 08:30 Spain

Jun 06 08:50 France

Jun 06 11:00 Norway

Jun 06 15:00 US

Jun 07 15:30 Italy