18:30  AUD  Westpac Consumer Sentiment  Previous -8.30%

AUD/USD
AUD/USD Fundamental Analysis January 17, 2012 Forecast

AUD/USD Fundamental Analysis January 17, 2012 Forecast

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:

The Australian Dollar was lower against the U.S. Dollar during Mondays trading session.

AUD/USD was trading at 1.0277, down 0.47% The pair was likely to find support at 1.0233,  and resistance at 1.0378.

The downgrade of the 9 nations of the EU will have an impact on Australia but the same impact on the USD. It is the euro that will feel the major impact.

Meanwhile, the Australian Dollar was down against the Euro and the Japanese Yen, with EUR/AUD gaining 0.24% to hit 1.2306 and falling 0.65% to hit 78.97.

Tuesday will be a wait and see day, as the US markets are closed for a holiday on Monday. Watch closely for any news from the EU.