By FXEmpire.com
Analysis and Recommendation:
The AUD/USD is soaring since the RBA announcement this morning. The pair is currently trading at .9792 adding 0.0065.
In a simple statement earlier today, “The Reserve Bank of Australia (RBA) has cut the official cash rate by 25 basis points to 3.50 per cent, citing further weakening in Europe and some moderation in growth in China as contributing to its decision.”
“Europe’s economic and financial prospects have again been clouded by weakening growth, heightened political uncertainty and concerns about fiscal sustainability and the strength of some banks,” the RBA said.
The cut was in line with market consensus of a 25 basis point reduction.
The RBA’s decision to drop interest rates at its June board meeting comes after it cut the cash rate by 50 basis points in May.
The unemployment rate is likely to spike in May as weakening global and economic conditions take their toll on the jobs market.
Economists polled showed a median expectation for unemployment to rise to 5.1 per cent in May, with total unemployment flat for the month.
The participation rate, the percentage of people in work or looking for work, is expected to remain unchanged at 65.2 per cent.
Australia’s current account deficit grew more than expected in the March quarter, according to data from the Australian Bureau of Statistics.
The data showed Australia posted a seasonally adjusted current account deficit of $14.892 billion for the three months to March.
The figure is 55 per cent bigger than last quarter’s figure.
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 June 4 – 5, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
EUR |
Sentix Investor Confidence |
-28.9 |
-29.1 |
-24.5 |
|
|
USD |
Factory Orders m/m |
-0.6% |
0.3% |
-2.1% |
|
|
AUD |
AIG Services Index |
43.5 |
39.6 |
||
|
Jun 5 |
AUD |
Current Account |
-14.9B |
-14.1B |
-9.6B |
|
AUD |
Cash Rate |
3.50% |
3.50% |
3.75% |
Upcoming Economic Events that affect the AUD, NZD, JPY and USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Jun 6 |
1:30 |
AUD |
GDP q/q |
0.4% |
|
12:30 |
USD |
Revised Nonfarm Productivity q/q |
-0.5% |
|
|
14:30 |
USD |
Crude Oil Inventories |
||
|
18:00 |
USD |
Beige Book |
||
|
Jun 7 |
1:30 |
AUD |
Employment Change |
4.9% |
|
1:30 |
AUD |
Unemployment Rate |
15.5K |
|
|
12:30 |
USD |
Unemployment Claims |
383K |
|
|
14:00 |
USD |
Fed Chairman Bernanke Testifies |
||
|
23:50 |
JPY |
Current Account |
0.79T |
|
|
23:50 |
JPY |
Final GDP q/q |
1.0% |
|
|
Jun 8 |
1:30 |
AUD |
Trade Balance |
-1.59B |
|
1:30 |
AUD |
Home Loans m/m |
0.3% |
|
|
12:30 |
USD |
Trade Balance |
-51.8B |
|
|
14:00 |
USD |
Fed Chairman Bernanke Testifies |
Government Bond Auctions
Date Time Country
Jun 06 09:30 Germany
Jun 06 09:30 Portugal
Jun 06 14:30 UK
Jun 07 00:30 Japan
Jun 07 08:30 Spain
Jun 07 08:50 France
Jun 07 09:10 Sweden
Jun 07 15:00 US
Jun 08 10:00 Belgium
Jun 08 15:30 Italy
Click here for updated AUD/USD News.
Originally posted here
