Hi Clare,

The best thing to do, in my opinion, is go to the guitar shops near you and try a few. Not only will you be listening to them, but pay attention also to how they feel to you ergonomically. At 5'6" you could probably handle a variety of sizes (I'm only 5'2", so a smaller guitar is better for me). Find a guitar that feels really comfortable to you when you hold it. That's important in how much you'll be drawn to play it.

I haven't had a bad experience with Fender, but I do feel their specialty is electric, not acoustic, guitars. If it's all the same to you, you might go with a manufacturer who's stronger suit is their acoustic guitars.

Also, for the money, buying a used guitar can be a good idea as long as it is in good shape and has been treated well. Acoustic guitars develop tone as they age, so a used guitar may actually sound better (and maybe also be cheaper) than a shiny new one.

Keep us posted - and have fun!
Best- Lisa