AUD/USD Daily Fundamental Analysis for May 11, 2011

The Australian dollar strengthened versus major currencies, especially against the U.S. dollar, after Australia recorded a trade surplus of A$1740 million during the month of March, from a previous deficit of A$205 million, more than analysts’ expectations.

Australian economy is gathering momentum, where exports accelerated 9.00% in March, led by a gain in iron ore shipments.

As for the financial situation in Australia, the nation recorded its biggest annual job gain on record last year, after Australian employers added 37,800 workers in March, while monetary policy maker in Australia noted that the increased demand for skilled workers at projects will help accelerate wage growth and inflation, pushing the RBA to increase the interest rates in the upcoming period.

On Wednesday, the Australian economy will release critical jobs figures, where the nation is to release its unemployment rates for April at 01:30 GMT, where unemployment is expected to remain steady at 4.9 percent. The employment change is expected to ease to 17,000 following March’s rise of 37,800.

As for the U.S. economy, it will report trade figures for March at 12:30 GMT, and expectations refer to a deficit of $46.6 billion widening from the previous deficit of $45.8 billion.

Written by ForexMansion.com