The AUD/USD pair had a strong start for the week on Monday, where the pair covered some of its previous losses as Aussie gained more momentum against the US dollar on the back of the Merkel and Sarkozy meeting.
The dollar retreated against most of its major counterparts with the beginning of the week, after its strong performance with the end of last week. The euro was able to recover from its lowest level in more than a year against greenback, adding more pressure on the Federal currency.
The expected meeting between the Germany and France leaders provided markets with confidence, which drove the higher-yielding assets to the upside.
On Tuesday at 00:30 GMT, the Australian economy will issue the Building Approvals for November, where the previous reading was down by 10.7% and it’s expected to advance 6.0%, while the annual reading was down by 29.8% and the expectations refer to-19.6%.
At 15:00 GMT the U.S. economy will issue the Wholesale Inventories for November, where the previous reading was up by 1.6% and it’s expected to retreat to 0.4%.
Originally posted here
