The Australian dollar extended its gains versus the greenback which traded around the highest level in more than 3 weeks after the G20 meeting on Saturday put more pressure on European leaders to unveil a clear and comprehensive strategy to contain the two-year old debt crisis by the coming European summit.
Investors’ confidence increased as Germany and France pledged to deliver a plan to support banks and introduce more stimuli to contain the escalating sovereign crisis.
The market sentiment rebounded this time on optimism European debt crisis, increasing the demand for higher yielding currencies.
On Tuesday, the Reserve Bank of Australia will release the October minutes at 00:30 GMT, which will be closely assessed for any policy hints and whether the RBA considers cutting rates amid a challenging global environment.
On Tuesday at 12:30 GMT, the U.S. economy will issue the Producer Price Index for September where it’s expected to come at 0.2% from the prior reading of 0.0%, while the annual Producer Price Index is expected to ease to 6.4% from 6.5%.
The U.S. Net Long-term TIC Flows for August will be released at 13:00 GMT, where the previous reading was $9.5 billion, as for Total Net TIC Flows it recorded net selling of $51.8 billion the previous month.
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