The AUD/USD pair advanced for the second day on the back of the risk appetite that returned to the FX market, where the US dollar retreated against other majors giving a chance for the higher-yielding currencies to cover their previous losses.
The Australian dollar advanced despite the flat Australian retail sales during November, where the current discussion between the German Chancellor Angela Merkel and French President Nicolas Sarkozy provided the FX market with confidence, opening the way for Aussie to record more gains.
The weak data from the Australian economy fueled concerns regarding the interest rate, where the RBA could cut the rate further in order to support the economic recovery.
On Wednesday at 23:30 GMT (Tuesday), Australia will release the Westpac Consumer Confidence for January, where the previous reading was down by 94.7.
The U.S. economy will issue the MBA Mortgage Applications at 12:00 GMT, which had a prior reading of -4.10%.
Originally posted here
