By FX Empire.com
The Australian dollar remained under pressure on Wednesday yet started to correct the strong bearishness seen with the start of the week. Aussie had reached to the lowest level in more than six days versus the dollar after the Reserve Bank of Australia cut rates by 25 basis points to to 4.50%.
The bank’s decision reflects a decline in the nation’s underlying inflation rate to the weakest in 14 years as Europe’s debt crisis dims prospects for the world economy.
On the other hand, Australian home-building approvals declined in September by the most since November 2002 as permits granted for apartments and renovations slumped.
Aussie continues to trade with high volatility and weakness versus the US counterpart as the decision by the Greek Prime Minister to call a surprise referendum on the latest terms of the bailout for his country has caught his fellow European politicians, as well as the markets, completely by surprise.
On Thursday, at 22:30 GMT (Wednesday) Australia will release the AiG performance of service index for October which recorded 50.3 the previous month.
At 00:30 GMT we the Retail Sales for September, which had a prior reading of 0.6%, along with the quarterly reading for retail sales excluding inflation for the third quarter, while it had a prior reading of 0.3%.
On Thursday at 12:30 GMT, the U.S. economy will release the Non-Farm Productivity for the third quarter, where the preliminary reading is expected to come at 2.5% from the prior reading of -0.7%.
The Unit Labor Costs for the third quarter is expected to come at -0.4% from the previous reading of 3.3%.
At 12:30 GMT, U.S. economy will issue its weekly initial claims numbers, where the number of people filing for first-time claims for the state unemployment insurance increased 402 thousand last week.
The U.S. ISM Non-Manufacturing Composite for September will be released at 14:00 GMT, where it’s expected to come at 54.0 from the prior reading of 53.0.
