By FXEmpire.com

Analysis and Recommendation: (close of Asian session)

The AUD/USD has managed to climb off a low of 1.011 to trade at 1.0157 still down for the day.

Last week the RBA reduced its key lending rate by 50bps which surprised markets and sent the Aussie in a tailspin. On Friday, in a prepared statement the RBA said it was reducing its growth forecast for Australia for 2012 and adjusting its inflationary targets further weakening the AUD which was trading at the 1.04 range earlier in the week.

Midweek the USD moved up on news of manufacturing expansion, holding the Aussie to a lower trading range. On Friday, a confusing but disappointing Nonfarm payroll report showing that the US creates just 120K in jobs when the forecast was much high, should have sent the dollar falling, but it almost did the opposite, investors were now sure that the Fed would come to the rescue pushed the dollar to recent highs.

Several eco reports for Oz were released today, all were positive and should have supported the Australian dollar to help it move up, but they had little assistance.

Building approvals were double the forecast and retail sales were 4 times the forecast which should have offset last month’s negative data. We should see the Aussie show a little strength.

AUD

AIG Construction Index

34.9

36.2

JPY

Monetary Policy Meeting Minutes

TWD

Taiwanese CPI (YoY)

1.44%

1.40%

1.25%

AUD

Building Approvals (MoM)

7.4%

3.1%

-8.8%

AUD

NAB Business Confidence

4

3

AUD

Retail Sales (MoM)

0.9%

0.2%

0.3%

AUD

ANZ Job Advertisements (MoM)

-3.10%

0.70%

IDR

Indonesian GDP (YoY)

6.3%

6.3%

6.5%

CHF

Unemployment Rate

3.1%

3.1%

3.1%

Economic Events for May 8, 2012

00:01 GBP RICS House Price Balance -10% -10%

02:30 AUD Trade Balance -1.40B -0.48B

06:45 CHF GDP 0.1%

06:45 CHF SECO Consumer Climate -18 -19

13:15 CAD Housing Starts 202K 216K

Government Bond Auctions (this week)

Date Time Country

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

Originally posted here