AUD/USD Fundamental Analysis – September 21, 2015 – Forecast

Analysis and Recommendation:

The AUD/USD gained 14 points to trade at 0.7189 soaring above the 72 level after the Fed decision.  The Australian dollar rallied to a four-week high earlier this morning after the US Federal Reserve decided to leave interest rates on hold, citing weak global conditions as one of the main reasons behind the decision.

Investors around the world have, for a long time, expected that September would be the month the Fed would finally increase interest rates. The US greenback has strengthened against a basket of currencies including the Australian dollar as a result, with many foreign investors buying US dollars to take advantage of the higher returns.

Instead of hiking interest rates however, the Fed’s chair, Janet Yellen, announced that interest rates would remain unchanged, citing weak global conditions and the slowdown in China as two of the major reasons behind the decision. Currency investors responded swiftly, sending the Australian dollar soaring to a high of 0.7276.

While the US economy is in recovery mode – albeit slowly – Australia is facing an uphill battle where we must contend with a high unemployment rate, crashing commodity prices and a slowdown in China.  This contrast is likely to see the Australian dollar fall below its current level; with some analysts suggesting a dip into the US 50s range isn’t out of the question.

What this means is that investors who position their portfolios accordingly could benefit from further depreciation of the Aussie dollar against the US greenback.

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:

 

Upcoming Economic Events that you should be monitoring:

Monday, September 21, 2015

Government Bond Auctions

Date Time Country

Date Time Country Auction

Sep 21 12:00 Belgium Auctions OLOs

Sep 22 10:00 Holland Holds bond auction

Sep 22 17:30 Italy Announces details of CTZ/BTPei on 25 Sep

Sep 22 19:00 US Holds 2-year note auction

Sep 23 11:30 Germany Eur 4bn Sep 2017 Schatz

Sep 23 16:30 Sweden Announces details of auction on 30 Sep

Sep 23 19:00 US Holds 2-year FRN auction

Sep 23 19:00 US Holds 5-year note auction

Sep 24 11:00 Sweden Holds I/L bond auction

Sep 24 17:30 Italy Announces details of BTP/CCTeu on 29 Sep

Sep 24 19:00 US Holds 7-year note auction

Sep 25 11:10 Italy Auctions CTZ/BTPei

Sep 28 11:30 Germany Eur 1.5bn 12M (Sep 2016) Bubills