By FX Empire.com
The AUD/USD continued to trend to the downside even after the release of the November RBA Minutes which was less dovish than expected but the Aussie continued its downside movement against the greenback on risk aversion and evident market jitters.
The ongoing debt crisis in Europe in addition to the slowdown in the U.S. economy forced the RBA to cut the interest rate to 4.25% and kept it steady at this level in November meeting, while the policy makers said that they decided on a “modest easing” downplaying the room for much monetary tightening ahead.
The Australian currency still lost momentum after this change in the RBA’s policy, which open the way for the greenback to record more gains amid risk aversion that controlled the financial market recently.
On Wednesday at 23:30 GMT (Tuesday), Australia will release the Westpac Leading Index for September where it had a prior reading of 0.8%.
The U.S. economy will release the Consumer Price Index for October at 13:30 GMT, where the prior reading was 0.3% and expectations refer to 0.0%, while the annual CPI is expected to come at 3.6% from the previous 3.9%.
At 14:00 GMT the Net Long-term TIC Flows for September will be released, where it had a previous reading of $57.9 billion, as for the Total Net TIC Flows it had a previous reading of $89.6 billion.
The Industrial Production for October is due at 14:15 GMT and expected to come at 0.4% from the previous 0.2%, while the Capacity Utilization is expected to come at 77.7% from 77.4%.
Originally posted here
