Forex - AUD/USD weekly outlook: September 20-24

Published 09/19/2010, 11:06 AM
AUD/USD
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Investing.com – Last week saw Australia’s dollar retreat from a 2-year high against its U.S. counterpart, amid increased U.S. dollar demand following Japan’s intervention in the currency market.

AUD/USD hit 0.9468 on Friday, the pair’s highest since July 31, 2008; the pair subsequently consolidated at 0.9358 by close of trade on Friday, gaining 0.68% over the week.

The pair is likely to find support at 0.9204, the low of September 10, and resistance at 0.9468, Friday’s high.

On Tuesday, the Aussie surged to a 2-year high, as risk appetite increased after official data showed that U.S. retail sales rose more-than-expected in August, while a separate report showed business confidence in Australia rose to its highest level in 4 months.

But the U.S. dollar rebounded on Wednesday after Japan’s intervention in the currency market saw the U.S. dollar strengthen.

Next week, the U.S. Federal Reserve is to announce its benchmark interest rate. The U.S. is also to release several reports on the housing sector as well as a weekly report on initial jobless claims.

The country is also to release key data on manufacturing production while Federal Reserve chairman Ben Bernanke is to speak at a public engagement.

Meanwhile, in Australia, the central bank is to publish the minutes of the last meeting of the monetary policy committee, while the bank’s governor is to speak at a public engagement.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect AUD/USD.

Monday, September 20

The U.S. is to begin the week by publishing industry data on home sales, a leading indicator of economic health.

In Australia, the Governor of the Reserve Bank of Australia Glenn Stevens is to speak, his comments will be closely watched for any clues to the future direction of monetary policy.

Tuesday, September 21

On Tuesday, the U.S. Federal Reserve is to announce its benchmark interest rate, followed by the closely watched rate statement. The U.S. is also to release key data on building permits and housing starts, leading indicators of growth in the construction sector.

Meanwhile, Australia’s central bank is to publish the minutes of the most recent meeting of the monetary policy committee. The data provides in-depth insights into the economic conditions that influenced the committee's decision on where to set interest rates.

Wednesday, September 22

The U.S. is to publish data on crude oil inventories as well as industry data on house prices, a leading indicator of the housing industry's health.

Also Wednesday, Australia is to publish an index of leading economic indicators, designed to predict the future direction of the economy.

Thursday, September 23

The U.S. is to release key weekly data on initial jobless claims, a leading indicator of economic health, as well as data on existing home sales. The country is also due to publish an index of leading economic indicators.

Friday, September 24


The U.S. is to end the week by producing key data on durable goods orders, a leading indicator of manufacturing production. The country is also to produce data on new home sales, a leading indicator of growth in the housing sector.

Later in the day, Federal Reserve Chairman Ben Bernanke is expected to deliver a speech on the U.S. economy. His comments will be closely scrutinized for any clues to the future direction of monetary policy.

Meanwhile, the Reserve Bank of Australia is due to publish its annual report, providing a summary of the prior year's operations.  

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