By FX Empire.com
The AUD/USD pair retreated last week due to lack confidence in the financial market and risk aversion which returned to control the FX market, driving higher-yielding currencies down such as the Australian dollar.
The Australian dollar and other major currencies still affected by the current EU debt crisis, and the delay from EU leaders to announce their plan to contain the crisis.
The market will start the week with reaction to what the leaders announce on Sunday after the October 23 summit, although they are embraced for further delay after Germany and France called for another summit on Wednesday, which might see the delay of the measures, yet in general the market will react mainly to what the leaders say which might provide the guidelines for the measures and accordingly if the measures are strong the risk appetite will return and if not a strong selloff will be evident.
On Monday at 00:30 GMT, the Australian economy will release the Producer Price Index for the third quarter, where the previous reading was up by 0.8%. The annual Producer Price Index had a previous reading of 3.4%.
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