AUD/USD Fundamental Forecast – September 14, 2016

The AUD/USD declined 22 points as the greenback gained momentum and a speech by RBA Asst. Kent weighed heavily on the currency. The NAB business confidence report came in higher than last month and Chinese data printed in the green this morning which should have supported a climb in the Aussie. The currency remained well within its current range and close to the RBA desired level.

The Australian dollar pared losses after China’s economy showed signs of rebounding as factory output, investment and retail sales all exceeded economist estimates. The Aussie, a bellwether for sentiment toward China, was 0.2 per cent lower at 75.48 US cents after dropping as much as 0.3 per cent.

The Aussie has failed to depreciate by as much as the Reserve Bank of Australia expected in response to weaker commodity prices and a record-low domestic cash rate, assistant governor Christopher Kent said at a Bloomberg event in Sydney, citing very easy and unconventional policies elsewhere in the world.

The Fed’s Brainard was rather dovish in the move toward tighter US policy, even as she acknowledged that the world’s largest economy was making gradual progress toward achieving the central bank’s goals.

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 September 14, 2016

Government Bond Auctions

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Sep 13 11:00 Netherlands Eur 2-3bn 0% Jan 2022 DSL

Sep 13 11:10 Italy Holds bond auction

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