AUD/USD Daily Fundamental Analysis for June 21, 2011

By ForexMansion.com

With the lack of fundamentals from the Australian economy on the first day of the week on Monday, the Australian dollar traded inline with the market sentiment and commodity movements along with the stock markets movements, as jitters continued to dominate the outlook.  

We can see that commodity prices are still mixed with downside tendencies on prospects for slowing global growth. The slowing outlook for growth and fears of the deepening debt crisis are weighing negatively on the sentiment and on high yielding assets.

Moreover, major Asian currencies started the week with a downside movement as the European debt crisis continues to deepen, increasing the fears for global investors, and pushed them to avoid their investment in higher yielding currencies such as the Aussie.

On Tuesday, the attention will be on the comments from the Reserve Bank of Australia (RBA).

Expectations indicate that the Reserve Bank of Australia is to introduce more measures to support the economic recovery that might be highlighted in the minutes.

We can see that the Australian dollar will incline versus major currencies as the Australian government's efforts for helping the nation to rebound again before the year's ending. Still after Stevens comments that signaled the possibility for the bank to move soon on rates, the focus will be on any hawkish comments that might help aussie rally versus the dollar.

The minutes will have a heavy impact on the market movements, where the Reserve Bank of Australia meeting minutes is due at 01.30 GMT.

The U.S. economy will take the lead at 14:00 GMT, and release the existing home sales index for May, where it's expected to fall by 4.0% at 4.85 million from 5.05 million.

Originally posted here

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