AUD/USD Fundamental Analysis October 10, 2014 Forecast

Analysis and Recommendations: The AUD/USD posted a technical closing price reversal top on Thursday. This chart pattern could be signaling the start of a 2 to 3 day break. Investor worries about slower global economic growth was the catalyst behind the selling pressure.

Earlier in the week, the Reserve Bank of Australia said it wasn’t concerned about the current level of the currency, and that it would keep interest rates on hold in October. The current cash rate is at a historic low of 2.5 percent. This rate hasn’t changed since August 2014.

The RBA also expressed some concerns about lower demand from China.

On Wednesday, the latest Fed minutes revealed its concerns about the slowing global economy. This helped underpin the Aussie yesterday, but these gains were taken away on Thursday when the U.S. Dollar rallied on better-than-expected weekly unemployment claims.

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 

                Currency                                                  Event                                                     Forecast        Previous                 

                 EUR                                          French Industrial Production                                 -0.2%             0.2%

                 GBP                                          Trade Balance                                                       -9.6B             -10.2B

                 CAD                                          Employment Change                                            18.7K            -11.0K

                 CAD                                          Unemployment Rate                                              7.0%              7.0%

                 USD                                          Import Prices m/m                                                -0.5%             -0.9%

                 USD                                          FOMC Member Plosser Speaks

                 ALL                                           IMF Meetings

                 CAD                                          BOC Business Outlook Survey

                 ALL                                           G20 Meetings

                 USD                                          FOMC Member Fisher Speaks