Analysis and Recommendation: (AUD/USD Forecast)
The AUD/USD gained steadily to trade at 0.7966 seemingly resilient after retail sales missed expectations. Even yesterday’s RBA decision had little effect on the Aussie as it moves towards the 80 level. The Australian dollar has continued to gather momentum from the Reserve Bank of Australia’s May board meeting on Tuesday, climbing as investors trimmed bets on the prospect of any further rate cuts from the central bank this year.
The rally was primarily driven by analysis of the monetary policy statement delivered by RBA Governor Glenn Stevens on Tuesday, with the central bank abandoning talk of an easing bias after cutting the cash rate to a new record low of 2 per cent.
Given yesterday’s cut was widely expected the market has turned its attention to future moves and it appears few predict any action from the central bank in coming meetings.
China’s services sector increased solidly in April, the strongest expansion in four months but still not enough to offset the fall in manufacturing activity, a private survey has found.
The HSBC China Services business activity index printed at 52.9, up from 52.3 in March. A reading above 50 signals expansion, while a reading below signal contraction.
ForexTraq 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:
|Japan – Greenery Day|
|NZD||Employment Change (QoQ)||0.7%||0.8%||1.2%|
|AUD||Retail Sales (MoM) (Mar)||0.3%||0.4%||0.7%|
Upcoming Economic Events that you should be monitoring:
Thursday, May 7, 2015
|AUD||Employment Change (Apr)||5.0K||37.7K|
|AUD||Full Employment Change (Apr)||31.5K|
|AUD||Unemployment Rate (Apr)||6.2%||6.1%|
|EUR||German Factory Orders (MoM) (Mar)||1.5%||-0.9%|
|RUB||Central Bank reserves (USD)||353.5B|
|USD||Initial Jobless Claims||280K||262K|
|CAD||Building Permits (MoM) (Mar)||2.5%||-0.9%|
Government Bond Auctions
Date Time Country
May 07 08:30 Spain Auctions 0.5% Oct 2017 Bono, 0.55%
May 07 09:10 France Auctions OATs
May 07 09:10 Sweden Holds inflation-linked bond auction
May 08 10:00 Norway Details bond auction on 12 May
May 08 15:30 Italy Announces details of BTP
May 12 09:15 Norway Holds bond auction
May 13 09:10 Italy Auctions BTPs/CCTeus
May 13 09:30 Germany Eur 3bn Feb 2025 Bund
May 13 14:30 Sweden Details bond auction on 20 May
May 14 09:30 UK Auctions 2% 2020 Conventional Gilt
AUD/USD Exchange Rate