AUD/USD Daily Fundamental Analysis
The Australian dollar extends its downside movements against the U.S. dollar, the pair reached the lowest level in about five months at 0.9930, after the Australian economy reported that business conditions index dropped to -1 in July from 2.
Moreover, Aussie continues the bearishness as the stock markets slumped the most in three years on concerns that the loss of the US long-term credit may worsen on the global economic outlook amid dire growth expectations.
As for the negative outlook intensified after the Standard & Poor?s agency downgraded the US?s credit rating from AAA to AA+ along the sluggish US economy; at the meantime the global economy faces also the European debt crisis with the pressure spreading to Italy and Spain which might indeed worsen the outlook.
On the other hand, the Australian dollar dropped after the China?s consumer prices rose by more than economists forecast, stoking concern the government will take more measures to cool growth.
On Wednesday, the AUD Westpac consumer confidence index S.A. for August is due at 01:30 GMT, where the prior reading dropped 8.3% during July, while the economy also will release its retail sales ex. Inflation for the second quarter at 01:30 GMT.
At 14:00 GMT, the U.S. economy will release the wholesale inventories for June, where the previous reading was 1.8% and expected to retreat to 1.0%. The monthly budget statement for July will be released at 18:00 GMT, where the previous reading showed a deficit of $43.1 billion and expected to widen to a deficit of $140.0 billion.
EUR/CHF Daily Fundamental Analysis
The franc is still driving the EUR/CHF pair to the downside as the bearishness dominates the movement amid strong risk aversion in the market and fears over the worsening debt crisis in the euro area.
The swiss franc on Tuesday rallied yet to a fresh record high versus the euro as the volatility increases with rising jitters of another sudden move from the Swiss National Bank to weaken its currency.
Investors saw some signs of progress in the bond market in the euro area as Trichet on Tuesday confirmed the intervention in the secondary market and Italian and Spanish borrowing costs eased with the support, yet the haven demand on swissy assures that investors remain tensed and not fully confident that the measure is enough to prevent the contagion risk.
On Wednesday, the market will remain jittery especially with the lack of major fundamentals. No data is queued from release from both nations, where the market sentiment will be the main focus for the pair amid a light fundamental week.
The focus will be on the sentiment and the final decision from the Federal Open Market Committee late on Tuesday which will have its echo on the market on Wednesday, especially if the fed failed to calm the market and investors.
Also, jitters will remain with the franc at records high which will keep the fear evident for any sudden intervention from the SNB again as the haven demand is still evident and favored placing the odds for further swissy gains!
NZD/USD Daily Fundamental Analysis
The market continues its downside movement as the global economic growth outlook falters, where haven assets advanced after the greenback after the Standard & Poor?s downgraded the US?s long-term credit rating, while the European crisis continues to escalate, damping the demand for higher-yielding investments and accordingly pressuring kiwi.
New Zealand dollar dropped against the greenback as concern over a slowdown in the U.S. economy and the euro-region?s debt crisis sapped demand for higher-yielding assets.
Kiwi also weakened with the selloff in Asian stock markets that declined to the lowest since 2008 on concern the U.S. economy might fall in recession. More losses were seen after the reported rise in Chinese inflation which fueled speculation for further monetary tightening that will dampen growth in New Zealand?s biggest trading partner.
On Wednesday, at 22.4 GMT (Tuesday) the New Zealand economy is to start by the NZ card spending for July, while it inclined by 0.8% in June.
At 14:00 GMT, the U.S. economy will release the wholesale inventories for June, where the previous reading was 1.8% and expected to retreat to 1.0%. The monthly budget statement for July will be released at 18:00 GMT, where the previous reading showed a deficit of $43.1 billion and expected to widen to a deficit of $140.0 billion.
USD/CAD Daily Fundamental Analysis
The USD/CAD pair erased earlier gains and dropped back on Tuesday, where the USD/CAD pair rose earlier on Tuesday to reach parity amid the huge pessimism that continued to dominate markets after the S&P downgrade the U.S. AAA credit rating, however, better than expected housing data from Canada, in addition to hopes the FOMC will pledge to keep the loose monetary policy unchanged for an extended period, provided the CAD with momentum to rise back against the USD, and accordingly, the USD/CAD pair fell back.
Moreover, crude oil prices erased earlier losses and rose back after falling to as low as $75 a barrel amid the uncertainty surrounding the outlook for global growth, however, crude oil prices rebounded to the upside, which boosted the CAD, and pushed the USD/CAD pair to drop.
Investors will be focused on the FOMC rate decision later on Tuesday amid the recent developments, where it?s unclear whether the FOMC will signal the possibility of QE3 after the S&P downgrade to the U.S. debt.
Wednesday August 10:
From the U.S. the wholesale inventories index for June is due at 14:00 GMT and expected to ease to 1.0% following 1.8%.
At 18:00 GMT the Monthly Budget Statement for July is due with the deficit expected to widen to $140.0 billion from $43.1 billion.
Source: http://www.fxstreet.com/fundamental/analysis-reports/crosses-fundamental-outlook/2011-08-10.html
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