The AUD/USD pair continued its upside movements to reach its highest level in more than three weeks, as the weak US dollar helped the Aussie to cover all of its previous losses.
The cheerful PMI numbers about the Australian economy helped the Aussie to take the lead against the dollar, in addition to the solid manufacturing numbers from China and India which gave a strong signs about the recovery of the global demand.
On the other hand, the expected recovery in theU.S.manufacturing sector increased optimism in the financial market and reduced demand for lower yielding currencies such as the US dollar, opening the way for the Aussie to record more gains.
On Wednesday the Australian economy will release the AiG Performance of Service Index for December at 22:30 GMT, where the prior reading was 47.7.
At 12:00 GMT, the American Factory Orders for November will be published, where the expectations refer to 2.0% from the previous drop of 0.4%. While the Total Vehicle Sales for December is expected to come at 13.50 million from the prior 13.59 million.
Originally posted here
