AUD/USD Fundamental Analysis October 20, 2014 Forecast

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Updated: Aug 25, 2015, 01:00 UTC

Analysis and Recommendation: The AUD/USD gained 17 points to trade at 0.8774 as the US dollar eased in yesterday’s session. Iron ore recovered slightly

AUD/USD Fundamental Analysis October 20, 2014 Forecast

Analysis and Recommendation:

The AUD/USD gained 17 points to trade at 0.8774 as the US dollar eased in yesterday’s session. Iron ore recovered slightly while Aussie traders bought up the cheap asset. The Aussie is weaker but recovering after comments from a US Federal Reserve official dented the US currency and helped struggling global share markets. The AUD has recovered from its lows as traders responded to Federal Reserve Bank of St Louis president James Bullard’s suggestion the US Fed’s quantitative easing stimulus measures should continue until December instead of ceasing this month.

The comment from Mr Bullard, a non-voting member of the US central bank’s Federal Open Market Committee, helped the Australian dollar by denting the greenback and giving a late boost to Wall Street’s waning S&P 500 share market index, ANZ senior foreign exchange strategist Daniel Been said.

Market focus this today will be Janet Yellen’s address and her tone and comments could send the dollar on a rally to return to its recent highs, if she suggests that the Fed is on the same tract. The Australian dollar had also failed to really capitalize on a comment by the Federal Reserve Bank of St Louis president James Bullard that the ending of the US central bank’s quantitative easing program should be delayed until December, which had weakened

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:

There are no data releases scheduled Friday morning for the Asian markets. Market focus will be on Janet Yellen’s speech later today.