Economic Events: (GMT)

Close of Asian Markets

There are no economic events  or reports due in Australia today.

08:30     USD     GDP Price Index (QoQ)     2.0%     2.6%

08:30     USD     GDP (QoQ)     3.0%     1.8%

The GDP Price Index measures the annualized change in the price of all goods and services included in gross domestic product.It is the broadest inflationary indicator.

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.

 09:55    USD     Michigan Consumer Sentiment Index     74.2     74.0

The University of Michigan Consumer Sentiment Index rates the relative level of current and future economic conditions. There are two versions of this data released two weeks apart, preliminary and revised. The preliminary data tends to have a greater impact. The reading is compiled from a survey of around 500 consumers.

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

AUD/USD Fundamental Analysis Jan. 27, 2012 Forecast

Analysis and Recommendation:

AUD/USD was trading at 1.0605

The dollar weakened on FOMC statements against all its trading partners. In early Asian markets the USD continued to show weakness until the end of the session when the dollar improved slightly.

The AUD opened at 1.0597 moving up to 1.0615 before settling in near 1.06 for the day.

The USD was up in the US session until the Fed comments, driving the USD straight down. The Fed said it would hold interest rates until sometime in 2014. Stock markets soared and the currency fell. The yen was also weaked by reports showing an annual trade deficit in 2011, for the first time since 1980. This is the  point at which Japan's savings turn around in terms of momentum has long been seen as the time to sell the Japanese yen.

Weak demand for Japanese goods and services abroad coupled with a stronger yen were among the problems causing the trade gap. You also have to keep in mind the Tsunami and Earthquake that devistated a lot of Japans manufacturing area and lost exports.

The World Economic Forum continues its meeting in Davos, Switzerland, and markets will await comments from policymakers or financial and corporate leaders on the U.S. and European economies. Angela Merkel gave the opening keynote address, admitting that the austerity programs and bailouts in Europe had failed, and preparing the markets for a Greek default.

Markets in Hong Kong, Taipei and Shanghai, among others, remained closed for the Lunar New Year holidays.

Upcoming Govt Bond Sales Dates

Jan 27  10:10  Italy   BOT auction

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

Name S3 S2 S1 Pivot R1 R2 R3

Classic
1.0305
1.0375
1.0507
1.0577
1.0709
1.0779
1.0911

Fibonacci
1.0375
1.0452
1.0500
1.0577
1.0654
1.0702
1.0779

Camarilla
1.0584
1.0603
1.0621
1.0577
1.0659
1.0677
1.0696

Woodie's
-
1.0391
1.0539
1.0593
1.0741
1.0795
-

DeMark's
-
-
1.0744
1.0594
1.0542
-
-