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Forex Daily Outlook October 2 2012

Australian rate decision and UK Construction PMI are the main highlights on today’s outlook. Let’s see what awaits us today.

In the US, Total Vehicle Sales. Domestic auto sales increased more than predicted in August rising to 14.5 million from14.1 million in July. Economists expected the reading to remain unchanged. A small drop to 14.4 million is predicted now.

In Europe, Spanish Unemployment Change. Spain job market added an impressive figure of 38,200 jobs in August after losing 27,800 jobs in July. A small increase is expected now.

Later in Europe, PPI. The price of finished goods increased by 0.4% in July from a 0.5% decline in June. The reading was above predictions. Another rise of 0.6% is forecasted this time.

For more on the Euro, read the  Euro to dollar forecast.

In Great Britain, Construction PMI. The UK housing sector contracted in August to 49.0 from 50.9 in the preceding month, lower than the 50.1 reading anticipated by analysts. A reading of 50.0 is forecasted now.

Later in Great Britain, Nationwide HPI. House prices increased more than predicted in August, climbing 1.3% after a 0.8% drop in July. Analysts anticipated a 0.1% increase. A small climb of 0.1% is forecasted now.

Later on in Great Britain, Halifax HPI. Halifax Bank of Scotland   house price index showed a decline of 0.4% in house prices during August, following 0.7% drop in July, contrary to predictions of a 0.3% rise. This time a 0.2% increase is forecasted.

Moreover in Great Britain, BRC Shop Price Index. UK retail sales purchase prices increased by 1.1% in August compared to 1.0% in July. A similar increase is expected now.

Read more about the Pound in the  GBP/USD forecast.

In Australia, Rate decision. Cash rate in the September meeting remained unchanged at 3.50% from the previous month. Monetary policy was maintained as well.

Later in Australia, AIG Services Index. Australian service sector contracted in August reaching 42.4 from 46.5 in July. A similar reading is forecasted.

Later on in Australia, Commodity Prices. Export commodity prices plunged in August by 13.7% after dropping 11.1% in July, indicating a worsening trend in Australian export revenues.

For more on the Aussie, read the  AUD/USD forecast.

In New Zealand, ANZ Commodity Prices increased 0.5% in August following 0.4% decline in July.

For more about the kiwi, see the NZD/USD forecast.

In Japan, Average Cash Earnings. Japanese employment salaries dropped unexpectedly by 1.2% in July, following 0.4% decline in the previous month. Economists predicted a modest decline of 0.3%.   Another drop of 0.9% is forecasted.

Read more about the yen in the USD/JPY forecast.

Trade well

Anat Dror

Anat Dror

Anat Dror Senior Writer I conceptualize, design and create multi-lingual websites. Apart from the technical work, my projects usually consist of writing content for these sites in English, French and Hebrew. In the past, I have built, managed and marketed an e-learning center for language studies, including moderating a live community of students. I've also worked as a community organizer