AUD/USD Daily Fundamental Analysis for August 15, 2011

The AUD/USD pair dropped to its lowest level in four months as fears controlled the markets due to the uncertainty about the global recovery, which reduced demand for high yielding currencies.

The Australian dollar declined sharply against greenback with the outlook for the sluggish economic recovery, adding that the Reserve Bank of Australia will leave the interest rates unchanged until the end of the year.

Moreover, Aussie continues its slide as Asian stock markets slumped the most in three years on concerns that we might fall into a double-dip recession.

The Australian economy will start this week with new motor vehicle sales index July at 01:30 GMT, while the prior reading inclined by 1.3% in June.

The U.S. empire manufacturing for August will be issued at 12:30 GMT, where the previous reading was down by 3.76 and expected to show a rise of 1.50.

At 13:00 GMT, the U.S. economy will release the net long-term TIC flows for June, where the previous reading was $23.6 billion. The total net TIC flows for June will be up at 13:00 GMT, where it had a previous reading of – $67.5 billion.