The Australian dollar dropped sharply against the greenback and other currencies on Tuesday, after the Australian trade balance recorded a deficit in February for the fist time in almost a year.
On the other hand, the Aussie has started its correctional movement against the US dollar, as the Australian fundamental data that showed unexpected trade deficit along with the expectation that the Australian dollar will continue its upside movement for 14 straight day, forced the Australian dollar to start its downside movement.
On Wednesday, Australia will show the home loans index for the month of February dropped by 2.6% after recording a decline of 4.5% in January, according to median forecasts. This index indicates the status of consumer confidence through measuring the taken housing loans.
The forecasts noted that the Australian dollar will decline against majors, as the Federal Bank and European Central bank may raise interest rates, thereby increasing the demand for the dollar and the yen.
Originally posted here
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