The AUD/USD pair fluctuated last week after it recorded its highest level in two months, as the US dollar returned to record gains against other majors with the end of the week.
The Australian dollar retreated sharply as fears of the ongoing EU debt crisis eroded confidence in the financial market, which reduced investors’ appetite for risk.
The U.S. economy is to issue the Retail Sales index for December during the week, which will measure the holiday’s season sales and expectations refer to better than expected reading, which in roll will boost the dollar more against most of its major counterparts.
The AUD/USD pair could retreat further during the week, despite the boost could be witnessed from the Australia’s fundamentals, as risk aversion continued to dominate the FX market and prevent any effect for the economic data.
The Reserve Bank of Australia could maintain its monetary policy during its next meeting, as the latest fundamentals about the Australian economy showed a strong signs of recovery.
Major highlights for this week that will burden the AUD/USD pair’s trading:
Monday January 09:
On Monday at 22:30 GMT (Sunday),Australiawill issue the AiG Performance of Construction Index for December, where the previous reading was 39.6.
At 00:00 GMT HIA New Home Sales forAustraliawill be issued, where it had a prior reading of 5.5%. As for the ANZ Job Advertisements for December, it will be up at 00:30 GMT with a prior reading of 0.0%.
The Australian economy will issue the Retail Sales for November at 00:30 GMT, where it’s expected to shoe a rise of 0.3% from the previous reading of 0.2%.
On Monday at 20:00 GMT, theU.S.economy will release the Consumer Credit for November, where it’s expected to come at $7.00 billion from the prior reading of $7.645 billion.
Tuesday December 10:
On Tuesday at 00:30 GMT, the Australian economy will issue the Building Approvals for November, where the previous reading was down by 10.7% and it’s expected to advance to 6.0%, while the annual reading was down by 29.8% and the expectations refer to further drop to – 19.6%.
On Tuesday at 15:00 GMT, theU.S.economy will issue the Wholesale Inventories for November, where the previous reading was up by 1.6% and it’s expected to retreat to 0.4%.
Wednesday December 11:
On Wednesday at 23:30 GMT (Tuesday), Australiawill release the Westpac Consumer Confidence for January, where the previous reading was down by 94.7.
TheU.S.economy will issue the MBA Mortgage Applications at 12:00 GMT, which had a prior reading of – 4.10%.
Thursday December 12:
On Thursday, theU.S.economy will release the Advance Retail Sales for December at 13:30 GMT, where the expectations refer to 0.2% the same as the previous reading. The Retail Sales Less Autos is expected to rise to 0.3% from the prior 0.2%.
At 13:30 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 372 thousand last week.
The U.S. Business Inventories for November will be issued at 15:00 GMT, with a previous reading of 0.8% and the expectations refer to 0.4%. While the Monthly Budget Statement for December will be released at 19:00 GMT, and it’s expected to show a deficit of 79.0 billion.
Friday December 13:
On Friday at 13:30 GMT, theU.S.economy will issue the Import Price Index for December, where it’s expected to drop to 0.1% from the prior reading of 0.7%, while the annual reading had a previous reading of 9.9%.
The U.S. Trade Balance will be up at 13:30 GMT, where it’s expected to show a deficit of $45.0 billion from the prior deficit of $43.5 billion.
At 14:55 GMT, the University of Michigan Confidence for January will be up, where it had a prior reading of 69.9 and it’s expected to up to 70.3.
Originally posted here
