The AUD/USD pair retreated sharply last week on expectations that the global economy will suffer further if the European Leaders fail to control the financial crisis.
The latest updates from the EU debt crisis and Greece affected the pair’s movements negatively. Also Australian economy is losing its major trade partner as China reduces demand on raw materials and other Australian exports, as the economy slows.
Also the latest fundamentals from Australia were pessimistic enough to drive Aussie down against the dollar, as the home-building approvals declined in September by the most since November 2002, in addition Retail sales in September retreated.
On the other hand, the Reserve Bank of Australia left the door open for further monetary loosening, after the bank cut rates to 4.50% last week.
The current outlook from the RBA pressured Aussie to lose ground against the greenback and other major currencies, especially with the weak performance from the Australian economy.
Major highlights for this week that will affect the AUD/USD pair’s trading:
Monday November 07:
On Monday at 23:30 GMT (Sunday), the Australian economy will release the ANZ Job Advertisements for October, where the previous reading was down by 2.1%.
The U.S. economy will release the Consumer Credit for September at 19:00 GMT, where it’s expected to come at $5.00 billion from the previous reading of -$9.501 billion.
Tuesday November 08:
On Tuesday at 23:30 GMT (Monday) Australia will release the Trade Balance for September, where it’s expected to show a surplus of A$ 3000 million compared to the previous A$3100 million surplus.
NAB Business Confidence for October will be released at the same time, where it had a previous reading of -2, while the previous reading for NAB Business Conditions was 2.
Wednesday November 09:
On Wednesday at 23:30 GMT (Tuesday), the Westpac Consumer Confidence for November will be released from the Australian economy, where it had a prior reading of 0.4%.
At the same time Australia will release the Home Loans index for September, which is expected to come at 1.8% from the prior reading of 1.2%.
The U.S. economy will release the Wholesale Inventories for September at 14:00 GMT, where the prior reading was 0.4% and it’s expected to come at 0.6%.
Thursday November 10:
On Thursday at 23:30 GMT (Wednesday), The Australian economy will issue the Consumer Inflation Expectation for November, where it had a previous reading of 3.1%.
On the other hand, the Employment Rate for October is expected to come at 5.3% compare to the previous reading of 5.2%, while the Employment Change is expected to come at 10.0 thousand from the prior 20.4 thousand.
At 12:30 GMT, the U.S. economy will release the Import Price Index for October, which had a previous reading of 0.3% and it’s expected to come at 0.3%, on the other hand the annual Import Price Index had a prior reading of 13.4%.
Trade Balance for September will be released at the same time, where the previous deficit was $ 45.6 billion and expected to widen to $46.0 billion.
At 12:30 GMT, the U.S. economy will release its weekly initial claims numbers, where the number of people filing for first-time claims for the state unemployment insurance dropped to 397 thousand last week.
Friday November 11:
On Friday at 13:55 GMT, the U.S. economy will issue the University of Michigan Confidence for November, where it’s expected to come at 61.0 from the previous 60.9.
