The AUD/USD pair dropped to its lowest level in four days after the Reserve Bank of Australia cut interest rate by 25 basis points to 4.25%, which reduced demand for Aussie pushing the pair to the downside.
The RBA indicated that the inflation retreated during the last period, which helped the central bank approach a more easing monetary policy. The central bank statement increased bets for a possible rate cut in the upcoming period.
On the other hand, the greenback soared against other major currencies as a safe haven, after Standard & Poor’s announced it may cut the credit ratings for France, Germany and other countries from the EU region.
The Australian dollar tried to reflect its downside movement last week, as it increased to its highest level in almost three weeks, but after the RBA decision the Aussie may lose more ground against the dollar.
On Wednesday at 22:30 GMT (Tuesday), Australia will issue the AiG Performance of Construction Index for November, where it had a prior reading of 34.7.
At 00:30 GMT, Australia will release Gross Domestic Product for the third quarter, where it’s the expansion is expected unrevised at 1.2% while the annual Gross Domestic Product is expected to grow by 2.3% compare to the previous reading of 1.4%.
The U.S. economy will release the Consumer Credit for October at 20:00 GMT, where it’s expected to come at $7.00 billion compare to the previous reading of $7.386 billion.
Originally posted here
