AUD/USD Fundamental Analysis October 8, 2014 Forecast

Analysis and Recommendation:

The AUD/USD gave back most of yesterday’s gains to trade at 0.8744 as traders wait for the Reserve Bank decision due shortly. Although the Bank is not expected to make any changes but Glenn Steven’s comments on the economy might have some effect on the currency. The ANZ/Roy Morgan weekly consumer confidence index fell one per cent to 112.5 points in the first week of October. However, the index has been broadly steady for eight consecutive weeks, sitting around its long-run average. ANZ chief economist Warren Hogan remains confident that consumer sentiment is bouncing back, which will help boost spending.

The central bank is concerned soaring house prices and rapidly growing investor activity could pose a risk to banking stability and the economy, and has raised the possibility of changing regulations to curb risky lending to property investors. However there will be greater attention on its comments regarding the lower Australian dollar, which has fallen as much as eight US cents since late July.

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 08 09:30 Germany Eur 4.0bn Oct 2019 Bobl auction

Oct 08 09:30 Swiss Bond auction (for decision)

Oct 08 15:30 Italy Announces details of BTP

Oct 08 17:00 US 10Y Note auction

Oct 09 09:03 Sweden I/L bond auction

Oct 09 17:00 US 30Y bond auction

Oct 10 09:10 Italy BOT auction