By FXEmpire.com

Analysis and Recommendation:

The AUD/USD is trading in mid session at 1.0267. Today, the RBA at its monthly meeting held rates at 3.50 and added no additional monetary policy, which as expected by the markets. Building approvals soared this month, offsetting the negative data from the previous report.

Markets remain strong after the moves on Friday after the announcements from the EU Summit. The moves from safety to risk, have given added strength to the commodity currencies. The USD weakened in Monday trading after a report showed on drop in manufacturing for the its time in 3 years.

Markets are expected to be quiet as the US begins its 4th of July midweek holiday. Later this week we will see news from the ECB rate meeting, the BoE rate decision and the all important Nonfarm payroll release all after the US holiday.

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 July 2 – 3, 2012 actual v. forecast

Date

Currency

Event

Actual

Forecast

Previous

Jul 2

USD

ISM Manufacturing PMI

49.7

52.1

53.5

AUD

Building Approvals m/m

27.3%

5.1%

-7.6%

JPY

Average Cash Earnings y/y

-0.8%

0.6%

0.2%

AUD

Cash Rate

3.50%

3.50%

3.50%

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

Date

Time

Currency

Event

Forecast

Previous

Jul 4

1:30

AUD

Retail sales

0.3%

-0.2%

Jul 5

1:30

AUD

Trade Balance

-0.51B

-0.20B

12:15

USD

ADP Non-Farm Employment Change

101K

133K

12:30

USD

Unemployment Claims

385K

386K

14:00

USD

ISM Non-Manufacturing PMI

53.1

53.7

15:00

USD

Crude Oil Inventories

-0.1M

Jul 6

12:30

USD

Non-Farm Employment Change

92K

69K

12:30

USD

Unemployment Rate

8.2%

8.2%

Click here for further AUD/USD Forecast.

Originally posted here