Events That might Affect the AUD/USD Pair

Submitted by Marcio Pereira on Wed, 30/05/2012 - 18:26
in

Tradervox (Dublin) - The AUD/USD cross has been experiencing a bearish movement following the recent risk aversion in the market. While risk aversion in the market might continue for some time as Europe struggles with the debt crisis, the cross bearish trend might be limited following some fundamental and technical indicators showing that the current drop is excessive.

Some of the positive events that have happened so far include the RBA Governor Stevens’ speech on Sunday which led to a great start for the Australian dollar and the HIA New Home Sales which was recommendable. The Retail Sales report which was released today minimized the effects of the Europe crisis prior to Italian auction.

The building approvals report which will be released on Thursday is expected to keep the Australian dollar strong against most of its peers, despite the risk aversion in the market. The release has been quite volatile in the past and might see the Aussie increasing or holding the dollar. The market is expecting an increase of 0.7 percent but any greater than this would lead to the AUD/USD rising. Another report that will be released at the same time as Building Approvals is the Private Capital Expenditure which fell 0.3 percent in the first quarter. However, the market is expecting a better reading of 4.1 percent.

The Private Sector Credit is another report that will be released on Thursday at 1:30 as the other two reports. The indicator tends to show less movement and is more accurate than most other indicators. The last two reports has indicated a moderate growth in new credit coming in at 0.4 percent both times. This time, the market expects a little change on the indicator. On this day, the AIG Manufacturing Index reading will be announced at 23:30 GMT. The index dropped sharply in April spiraling to 43.9 points which indicates contraction in the sector. A little improvement on this index is expected this time.

Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management. 

 

Note: Investments in financial products are subject to market risk.  Some financial products, such as currency exchange, are highly speculative and any investment should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. 

Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management. Tradervox.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by Tradervox.com.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice.

Tradervox.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you.

Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.

You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

By accessing this website, you accept our Terms and Conditions