AUD/USD Fundamental Analysis(2015.11.10)

AUD/USD Fundamental Analysis(2015.11.10)

The AUD/USD is flat in the morning session as traders hope for stimulus from China after inflation data printed well below expectations and the  continued to rally. The pair is trading at 0.7048 near its lowest point this year.  Having plunged by more than a cent on Friday evening on the back of a strong US jobs report for October, the Australian dollar consolidated just above the US 70 cent level overnight, operating in a thin range of .7033 to .7070 throughout the course of European and North American trade.

The solid performance came despite continued chatter of a potential rate hike from the US Fed in December and the OECD downgrading its global growth forecasts for this year and next to 2.9% and 3.3% respectively, down from 3.0% and 3.6% seen previously.Traders will closely review the latest ANZ-Roy Morgan weekly consumer confidence report, the NAB business survey for October along with housing finance data for September.

China’s inflation eased in October, leaving room for Beijing to stimulate its slowing economy if necessary. Consumer prices rose 1.3 percent over a year earlier, down from September’s 1.6 percent, government data showed Tuesday. That was driven mostly by a 1.9 percent increase in food costs.Lower inflation leaves room for Beijing to cut interest rates or take other steps to stimulate its cooling economy after growth weakened to a six-year low of 6.9 percent in the latest quarter.October trade was unexpectedly weak, raising expectations Beijing might face more pressure to shore up growth, though Chinese leaders have said they want to avoid an across-the-board stimulus.

Source:Fxempire