By FXEmpire.com
Analysis and Recommendation: (close of Asian session)
The AUD/USD has recovered slightly from the fall yesterday when the Reserve Bank surprised markets dropping rates by 50bps. Markets had expected a reduction of 25bps.
As soon as the RBA announced their decision the Aussie began to decline, falling below the 1.0326 level.
Yesterday, the USD was able to gather some strength on eco data which showed an expansion in the US manufacturing sector.
Also, Chinese PMI was released a bit under forecast; which is a negative for the AUD.
The pair are presently trading at 1.0334 as the Aussie makes a small comeback.
Economic Data for May 1 – 2, 2012 actual v. forecast
( Most markets were closed for “May Day” Holiday)
|
GBP |
Manufacturing PMI |
50.5 |
51.4 |
51.9 |
|
USD |
ISM Manufacturing Index |
54.8 |
53.0 |
53.4 |
|
May 02 |
CNY |
Chinese HSBC Manufacturing PMI |
49.30 |
49.10 |
Economic Events for May 3, 2012 for the Asian and US Markets
8:30am USD Unemployment Claims
Measures the number of individuals who filed for unemployment insurance for the first time during the past week. Although it’s generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions.
8:30am USD Prelim Nonfarm Productivity q/q
Measures annualized change in labor efficiency when producing goods and services, excluding the farming industry. Productivity and labor-related inflation are directly linked – a drop in a worker’s productivity is equivalent to a rise in their wage. When businesses pay more for labor the higher costs are usually passed on to the consumer.
8:30am USD Prelim Unit Labor Costs q/q
This measures annualized change in the price businesses pay for labor, excluding the farming industry. It’s a leading indicator of consumer inflation – when businesses pay more for labor the higher costs are usually passed on to the consumer.
10:00am USD ISM Non-Manufacturing PMI
The Institute for Supply Management measures the level of a diffusion index based on surveyed purchasing managers, excluding the manufacturing industry. It’s a leading indicator of economic health – businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy.
1:00pm USD FOMC Member Lockhart Speaks
Federal Reserve FOMC members vote on where to set the nation’s key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy.
9:30pm AUD RBA Monetary Policy Statement
Released quarterly the Statement on Monetary Policy provides valuable insight into the bank’s view of economic conditions and inflation – the key factors that will shape the future of monetary policy and influence their interest rate decisions.
Government Bond Auctions (this week)
Date Time Country
May 03 08:30 Spain
May 03 08:50 France
May 03 09:10 Sweden
May 03 09:30 UK
May 08 09:15 Austria
May 08 09:30 Belgium
May 08 14:30 UK
May 08 15:30 Italy
May 08 17:00 US
May 09 09:10 Sweden
May 09 09:30 Germany
May 09 09:30 Swiss
May 09 09:30 UK
May 09 14:30 Sweden
May 09 15:30 Italy
May 09 17:00 US
May 10 15:00 US
May 10 17:00 US
May 11 09:10 Italy BOT auction
May 11 10:00 Belgium
Click here for updated AUD/USD News.
Originally posted here
