Aussie Heading Below $1 – This Week: Trade Balance, Retail Sales, Building Approvals

The Australian Dollar has been speculated by some to be the next safe haven currency. With a negative United States outlook and a very weak Yen, the Australian Dollar with it’s high interest rates, has been praised.  According to the Bank of New Zealand, the Aussie will not strengthen, but rather weaken in 2013.

According to the Bank of New Zealand, the Aussie will be at $0.99 by December 31, 2013.

It is worth noting that the Bank of New Zealand is the Australian Dollar’s most accurate forecaster (in the past 6 quarters according Bloomberg Rankings).

Last week’s Fiscal Cliff agreement pushed the Aussie up and so far it has retained much of those gains. If it does break through the 1.050 level, a bullish continuation from last week could be possible.

This Weeks News Events:

-Monday night at 7:30pm the Australian Trade Balance will be released. It is expected to be it’s lowest since 2010. This number is an indication of Australia’s imported/exported goods ratio for the given month.

-Tuesday at 7:30pm Austalian Retail Sales figures will be released. There is a forecast of a .3% gain after last month’s flat 0%.

-Wednesday at 7:30pm Building Approvals are scheduled to be announced. 3.1% is the expected gain. Last report saw a decrease of 7.6% while the month before saw an increase of 7.8%. Anything is possible for Wednesday’s Building Approval figures.

Keep your eyes on the AUD this week. As fundamentals are announced and technicals take their course proceeding the Fiscal Cliff jump, it is possible that we could again see a clear direction for the AUD/USD established in the next couple of weeks.

 

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