AUD/USD Fundamental Analysis October 29, 2014 Forecast

Analysis and Recommendation:

The AUD/USD added 15 points to trade at 0.8816 as sentiment moved towards the commodity currencies in the early session. The Aussie is trading in a tight range ahead of the outcome of the US Federal Reserve meeting later in the week. On Thursday morning Australian time, the US Federal Reserve will conclude its two-day its policy meeting, as traders will wait for the decision and statement to give some indication to future rate increases.

The greenback fell slightly ahead of a two-day Federal Reserve policy meeting expected to wind up its quantitative easing asset-purchase operations. The moves in the market though were narrow, with no big surprises expected from the meeting, but some anticipation that the Fed could further shape its message on raising interest rates sometime next year. The Fed has repeatedly said the first rate change since the funds rate was cut to the zero level at the end of 2008 would come ‘a considerable time’ after QE ends. Now that QE is ending, eyes will be on how the central bank changes that language, if at all.

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:

Government Bond Auction

Date Time Country Auction

Oct 28 12:10 Italy BOT auction

Oct 28 19:00 US 2Y Note auction

Oct 29 12:03 Sweden Bond auction

Oct 29 12:30 Germany Eur 4.0bn Aug 2024 Bund auction

Oct 29 17:30 US 2Y FRN auction

Oct 29 19:00 US 5Y Note auction

Oct 30 12:10 Italy BTP/CCTeu auctions

Oct 30 19:00 US 7Y Note auction