By FX Empire.com
The AUD/USD pair fell last week due to the uncertainty regarding the outlook for the global economy and uncertainty over the outlook for Australia, especially after the RBA cut interest rates last meeting, on the other hand the greenback is gaining against higher-yielding currencies as a safe haven.
The disappointing fundamental from the Australian economy reduced demand for the Aussie, pushing the pair to the downside. The risk of a deep global downturn amid the deepening debt crisis in Europe remains the main fear in market and supporting the dollar to gain grounds as a safe haven.
Expectations for the AUD/USD pair depend on the U.S. dollar movements, where the sentiment in the market and easing risk aversion can give the pair upside support yet more downbeat news from Europe and jitters will keep the dollar strong.
Both economies will not release any fundamentals, where the pair’s movements will depend on the market sentiment.
Originally posted here
