The Australian dollar strengthened against its all major counterparts, after the Australian economy has released a cheerful fundamental data about the unemployment situation, confirmed that the economic growth in Australia on the track.
Moreover, the Australian currency has continued its upside movement against US dollar, while the Aussie soared to the highest level against the greenback since it began trading freely in 1983, recorded a new several years high at 1.0506 last week.
Meanwhile, the outlook for Australian economic growth improved; after The Australian unemployment rate dropped lower than expectations during the month of March, as hire more workers, supporting the Australian currency to record a new historic record.
The decrease in the unemployment rate means more demand for labor especially in the construction sector where the country will need more workers to participate in the rebuilding projects in Queensland after the flood, from another perspective this will increase the level of consumer spending which might somehow support the economy from a different angle.
Last week, the Reserve Bank of Australia issued a decision regarding the benchmark interest rates leaving rates steady for fourth consecutive month at its highest level of 4.75%, after sluggish inflation rates.
On the other hand, the market is witnessing a good sentiment, as the traders cowed back into carry traders, in which low-yielding, cheap yen are sold in favor of currencies in countries with higher interest rates or other higher-yielding assets.
In the week ahead, the Australian dollar will witness some drop, as the market will focus on the US fundamental data along with the absence of important economic data for the Australian economy this week.
Major highlights for this week that will burden the AUD/USD pair’s trading:
All times are GMT
Monday April 11
Both economies won’t release any fundamental data
Tuesday April 12
The Australian economy is to start releasing economical data, where the economy will issue its NAB business conditions reading for the month of March at 01.30, which showed a drop by 2 last month.
While the nation will release the business confidence in March that showed an increase by 14 in February.
The AUD/USD is to decline, affected by the US trade balance that will release at 12.30 GMT, which may show the deficit will narrow to $43.1 billion during February, from a $46.3 billion deficit in January.
Wednesday April 13
Australia will show the Westpac consumer confidence seasonally adjusted for the month April, while the previous reading dropped by 2.4% at 00.30 GMT, alongside the Westpac consumer confidence index that increased to 104.1 in March.
On the other hand, the greenback will decline against the Australian dollar after the US advance retail sales will increase by 0.5% in March at 12.30 GMT, from a previous 1.0% in February. Further, the US retail sales Ex. Auto and gas that predicted to show an increase by 0.4%, from 0.6%.
Thursday April 14
The Commonwealth of Australia economy won’t release any fundamental data. On the other hand, the US economy will issue initial jobless claims, where the number of people filing for first-time claims for the state unemployment insurance has reached 382,000,000.
Friday April 15
Australian economy is to continue to non-issuance of new economic data, but the U.S. economy will issue its consumer price index at 12.30 GMT, that expected to release with an actual of 0.4% in March, less than a previous 0.5%.
Furthermore, U.S. will release the total net TIC flows for February at 13:00 GMT, and it had a previous reading of $32.5 billion, while the net long-term TIC flows had a previous reading of $51.5 billion.
Industrial production for March will be released at 13:15 GMT; and expected to show a rise of 0.5% compare with the last drop of 0.1%, the capacity utilization index for March could show a rise of 77.3% from the previous of 76.3%.
Finally, U.S. will release University of Michigan survey of consumer confidence sentiment during April at 13:55 GMT, the preliminary reading is expected to come at 69.0 compare with the previous reading of 67.5.
Originally posted here
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