AUD/USD Fundamental Analysis October 6, 2014 Forecast

By:

Updated: Aug 24, 2015, 22:00 UTC

Analysis and Recommendation: The AUD/USD lost 12 points to trade at 0.8790 ignoring new homes sales data this morning. The price of iron ore may have

AUD/USD Fundamental Analysis October 6, 2014 Forecast

Analysis and Recommendation:

The AUD/USD lost 12 points to trade at 0.8790 ignoring new homes sales data this morning. The price of iron ore may have found a base after enduring one of its worst ever months in September, with losses of 12 per cent and just three positive trading days. However, iron ore prices remain more than 40 per cent below where they started the year after an unprecedented three straight quarters of double-digit percentage declines.

Data out on Thursday showed that approvals for the construction of new homes rose three per cent in August, and almost 15 per cent for the year to August. Meanwhile, Australia’s trade deficit narrowed to $787 million in August, from a deficit of $1.075 billion in July.

The rally came after data out yesterday showed approvals for the construction of new homes rose three per cent in August, and the trade deficit narrowed to $787 million in August.

Lending by banks and other financial institutions expanded at a slower pace than expected in August, as growth in mortgages failed to compensate for flatness in the business sector. According to the Reserve Bank of Australia, total credit grew 0.4 per cent between July and August, compared with the 0.5 per cent forecast by a Bloomberg survey. The growth rate was the same as between June and July.

Lending for housing led the way, up 0.6 per cent month-on-month, while there was no growth in credit to businesses. Personal loans grew 0.2 per cent, at the same rate as the previous month. Within the housing data, growth in lending to investors outstripped credit to owner-occupiers.

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: