AUD/USD Fundamental Analysis February 22, 2012 Forecast

Economic Events: (GMT)

00:30     AUD                      Wage Price Index (QoQ)                                              0.8%                      0.7%

The Wage Price Index measures the change in the price businesses and the government pay for labor, excluding bonuses. It is a leading indicator of consumer price inflation. 

A higher than expected reading should be taken as positive/bullish for the AUD, while a lower than expected reading should be taken as negative/bearish for the AUD.                          

15:00     USD                     Existing Home Sales                                                     4.67M                     4.61M  

Existing Home Sales measures the change in the annualized number of existing residential buildings that were sold during the previous month. This report helps to gauge the strength of the U.S. housing market and is a key indicator of overall economic strength.

A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

AUD/USD Fundamental Analysis February 22, 2012 Forecast

Analysis and Recommendation: ( close of Asian session )

AUD/USD was trading at 1.0735. In early trading, the Australian dollar is lower as cautious traders slowly sell off the currency ahead of a decision on the release of Greece's second bailout package.

At noon,the Australian dollar was trading at 107.29 US cents, down from 107.71 cents on Monday.

When the EU announced that a deal with Greece was concluded, the markets began to rally with the pair moving up to 1.0735. The news from the EU overlapped the end of todays trading session, it should have a larger effect in after hours trading.

Monday February 20, 2012 Economic Reports actual v. forecast

US markets closed today for holiday

Sovereign Bond Auction Schedule

Feb 21  09:30  Spain  3 & 6M T-bill auction

Feb 21  15:30  UK  Details gilt auction on Mar 01

Feb 21  18:00  US  Auctions 2Y Notes

Feb 22  10:10  Sweden  Nominal bond auction

Feb 22  10:30  Germany  Eur 5.0bn Mar 2014 Schatz

Feb 22  16:30  Italy   Details CTZ/BTPei on Feb 24 & BOT on Feb 27

Feb 22  18:00  US  Auctions 5Y Notes

Feb 23  10:10  Sweden  Sek 0.75bn I/L bond auction

Feb 23  16:30  Italy   Details BTP/CCTeu on Feb 28

Feb 23  18:00  US  Auctions 7Y Notes

Feb 24  10:10  Italy   Auctions CTZ/BTP

AUD/USD Pivot Points (Time Frame: 1 Day)