AUD/USD
AUD/USD Fundamental Analysis January 18, 2012 Forecast

AUD/USD Fundamental Analysis January 18, 2012 Forecast

Close of Asian Session

Economic Events:

18:30                    AUD                                      Westpac Consumer Sentiment                                 Previous -8.30%              

The Westpac Consumer Sentiment Index measures the change in the level of consumer confidence in economic activity. On the index, a level above 100.0 indicates optimism; below indicates pessimism. The data is compiled from a survey of about 1,200 consumers which asks respondents to rate the relative level of past and future economic conditions. The Consumer Sentiment Index is an average of five component indexes which reflect consumers' evaluations of their household financial situation over the past year and the coming year, anticipated economic conditions over the coming year and the next five years, and buying conditions for major household items.

Consumers are also surveyed about their views on buying conditions for cars and dwellings, the wisest place for savings, and economic news recall.

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.

Importance:       Medium

Source Of Report:            Faculty of Economics and Commerce Melbourne Institute

Release URL:      http://melbourneinstitute.com/

19:30                    AUD                                      New Motor Vehicle Sales (MoM) 2.30%                -0.70%

Forecast                               2.30%

Previous                              -0.70%

New Motor Vehicle Sales measures the change in the number of new cars and trucks sold domestically. It is an important indicator of consumer spending is closely correlated to consumer confidence.

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.

Analysis and Recommendation:

AUD/USD was trading at 1.0371, up 0.55%. The couple will likely find support at 1.0233, Friday's low, and resistance at 1.0378.

The AUD is slightly up this morning still firmly entrenched in our recent trading range. The US market was closed overnight to observe Martin Luther King Day holiday which contributed to the lacklustre session as global markets digested and shrugged of a round of credit downgrades to debt-saddled Eurozone nations. All eyes will be on China's retail sales and industrial production numbers due out today for next direction. The duo are expect to trade within a tight rage throught foreign trading sessions today. It is a wait and see moment, let's see what happens with the economic reports. Although Gold was up in early trading which should help push up to ANZ.