Analysis and Recommendation:

The AUD/USD is trading at1.0581 as it remains strong in the risk off trading mode. As investors continue to move into more risk assets, the AUD has been seen as a good choice, with its high interest rate, its AAA rating and strong economy, the Aussie is being seen as a possible safe haven currency also. But it is a solid investment.

China will be releasing all their July eco data on Thursday and Friday which might weigh on the Aussie, but the possibility of monetary stimulus from the Chinese is a strong positive for the AUD.

Recent eco data has been very positive in Oz.

With US stocks and commodity prices firming, appetite for commodity currencies was stoked ahead of the Reserve Bank of Australia’s monetary policy review, where policy makers are expected to keep the target cash rate unchanged at 3.5 per cent.

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.

Economic Data August 7, 2012 actual v. forecast

Date

Currency

Event

Actual

Forecast

Previous

Aug. 07

GBP

BRC Retail Sales Monitor (YoY)

0.1%

-0.2%

1.4%

AUD

AIG Construction Index

32.6

34.8

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

Date

Time

Currency

Event

Previous

Aug 8

1:30

AUD

Home Loans m/m

-1.2%

12:30

USD

Prelim Nonfarm Productivity q/q

-0.9%

12:30

USD

Prelim Unit Labor Costs q/q

1.3%

14:30

USD

Crude Oil Inventories

22:45

NZD

Employment Change q/q

0.4%

22:45

NZD

Unemployment Rate

6.7%

23:50

JPY

Core Machinery Orders m/m

-14.8%

Aug 9

1:30

AUD

Employment Change

-27.0K

1:30

AUD

Unemployment Rate

5.2%

12:30

USD

Trade Balance

-48.7B

12:30

USD

Unemployment Claims

Aug 10

1:30

AUD

RBA Monetary Policy Statement

12:30

USD

Import Prices m/m

-2.7%

18:00

USD

Federal Budget Balance

-59.7B

Government Bond Auctions

Date Time Country

Aug 08 09:30 Germany

Aug 08 10:00 Norway

Aug 08 15:30 Italy

Aug 08 17:00 US

Aug 09 15:30 Italy

Aug 09 17:00 US

Aug 10 10:00 Belgium

Aug 13 09:10 Italy

Aug 13 09:10 Norway

Aug 13 09:30 Germany

Click here for updated AUD/USD News.

Originally posted here