By FX Empire.com
The market has followed the BOJ’s intervention, which weakened after the Bank of Japan decided to enter the currency market to sell the yen over the rest currencies to stem the yen’s appreciation that recorded a fresh all time high against the American dollar.
Meanwhile, the Australian dollar (Aussie) started the first trading day this week with a decline against its major counterparts on speculation that the Reserve Bank of Australia will cut the interest rates as the European crisis and slowing global growth weigh negatively on the economy.
Higher yielding currencies continued their downside trend after investors shifted their investment to the dollar after the BOJ’s intervention which inclined sharply versus all major counterparts.
On the other hand, IMF said that the global economy will enter a severe phase if European Leaders fail to control the crisis that threatens the recovery. Furthermore, the IMF also cut Australia’s 2012 growth forecast to 3.3% from the 3.5%.
On Tuesday, the Australian economy will release critical economic data that have a medium and high impact on the Australian currency‘s movements, starting with the AiG Performance of Manufacturing Index at 22:30 GMT (Monday) after it recorded 42.3 the previous month.
At 00:30 GMT Australia will release the quarterly reading for house price index for the third quarter, which had a prior reading of -0.1%. On the year it had a previous of -1.9%.
At 03:30 GMT the RBA will announce the rate decision and the bank is expected to keep rates steady at 4.75%.
At 05:30 GMT we have the monthly RBA Commodity Price Index for October that has a medium impact on the market, which had a previous reading of 115.4, along with the annual RBA Commodity Index SDR that inclined 26.6%.
The U.S. economy will issue the Construction Spending for September at 14:00 GMT, where it’s expected to come at 0.3% from the prior reading of 1.4%.
The ISM Manufacturing for October will be released at the same time, and expected at 52.3 from the previous reading of 51.6.
