By FXEmpire.com

Analysis and Recommendation: (close of Asian session)

The AUD/USD continues to decline, trading at the close of the Asian markets at 1.0074.

The Australian dollar has fallen to its lowest point in more than 120days after Greece’s Syriza left coalition leader, Alexis Tsipras, said he rejected Greece’s bailout deal.

Today the Aussie was trading at 100.75, down from 101.70, on concern that Greek politicians won’t reach an agreement on the country’s debt bailout.

The dollar had pushed lower after Prime Minister Julia Gillard said she would provide a tax cut to Australian businesses, even though this did not appear in the budget plan.

This followed Tuesday night’s release of Treasurer Wayne Swan’s fifth budget, which included a forecast surplus of $1.5 billion for the 2012/13 year.

Economic Reports for May 8-9, 2012 actual v. forecast

May 8

EUR

German Industrial Production (MoM)

2.8%

0.8%

-0.3%

CAD

Housing Starts

244.9K

204.0K

214.8K

Upcoming Economic Events that affect the AUD, NZD, JPY, CNY and USD

May 10

02:30

AUD

Employment Change

-5.5K

44.0K

02:30

AUD

Unemployment Rate

5.3%

5.2%

TBD

CNY

Chinese Trade Balance

7.93B

5.35B

13:30

USD

Import Price Index (MoM)

-0.2%

1.3%

13:30

USD

Trade Balance

-50.0B

-46.0B

13:30

USD

Initial Jobless Claims

369K

365K

13:30

USD

Continuing Jobless Claims

3278K

3276K

14:30

USD

Fed Chairman Bernanke Speaks

19:00

USD

Federal Budget Balance

30.0B

-198.2B

May 11

02:30

CNY

Chinese PPI (YoY)

-0.3%

02:30

CNY

Chinese CPI (MoM)

0.2%

06:30

CNY

Chinese Fixed Asset Investment (YoY)

20.9%

06:30

CNY

Chinese Industrial Production (YoY)

11.9%

06:30

CNY

Chinese Retail Sales (YoY)

15.2%

13:30

USD

Core PPI (MoM)

0.3%

13:30

USD

PPI (MoM)

0.0%

14:55

USD

Michigan Consumer Sentiment

76.4

Government Bond Auctions (this week)

Date Time Country

May 10 15:00 US

May 10 17:00 US

May 11 09:10 Italy BOT auction

May 11 10:00 Belgium

Click here a current AUD/USD Chart.

Originally posted here