By FXEmpire.com
Analysis and Recommendation: (close of Asian session)
The AUD/USD continues to fall, trading at 0.9771 as Asian markets close for the day.
The risk aversion mode of the markets continues to push the USD to dominate all of its trading partners.
Over the past week, there has been a fine balance between the moves to safety of the USD and the JPY. With recent downgrades by Fitch and Mood’s and the move to negative outlook, markets have pulled back from the JPY giving unlimited strength to the USD, which has been weighing on all commodities currencies and commodities.
Yesterday, the OECD report warned on contagion from the EU and the seriousness of the EU financial situation. With the EU summit beginning today, investors will pay great heed to news from Brussels.
Greece also continues to weigh on the global markets as fears of withdrawal from the euro in a disorderly fashion could cause upheaval in Europe.
From China the closely-watched private sector PMI tracking China’s manufacturing sector will be released overnight. While the PMI increased from a reading of 48.3 in March to a reading of 49.3 in April, the larger story is that the PMI has been below the ‘break-even’ level of 50 for six consecutive months. With markets so attuned to any hints – positive or negative – out of China, moves in this indicator have the potential to have a meaningful impact on markets. China will focus on correctly managing the relationship between maintaining stable, relatively fast economic growth, restructuring the economy and managing inflation expectations, Chinese Vice Premier Li Keqiang said, according to a statement posted on the government website late Tuesday
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 for May 22-23, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
GBP |
CPI (MoM) |
0.6% |
0.6% |
0.3% |
|
|
USD |
Existing Home Sales |
4.62M |
4.60M |
4.47M |
|
|
May 23 |
JPY |
Trade Balance |
-0.48T |
-0.60T |
-0.62T |
|
JPY |
Interest Rate Decision |
0.10% |
0.10% |
0.10% |
Upcoming Economic Events that affect the AUD, NZD, JPY and USD
|
May 24 |
2:00 |
NZD |
|
|
5:00 |
JPY |
||
|
12:30 |
USD |
-0.8% |
|
|
12:30 |
USD |
||
|
12:30 |
USD |
-4.0% |
|
|
23:30 |
JPY |
-0.5% |
|
|
May 25 |
TBD |
ALL |
|
|
13:55 |
USD |
Click here for further AUD/USD Forecast.
Originally posted here
