By FX Empire.com

The AUD/USD pair dropped last week to its lowest level in four weeks, where the greenback fluctuated against other majors and despite recovering some losses to the end of the week the pair still ended bearishly amid rising uncertainties over the outlook.

The disappointing fundamental from the Australian economy reduced demand for the Aussie, pushing the pair to the downside.

The Australian trade balance for October narrowed to A$ 2564 million compare to the previous of A$2953 million, while the business conditions survey dropped to -1 compare to the previous reading of 2.

On the other hand, the Aussie has lost momentum against the greenback and other major currencies since the RBA changed its policy, and cut the interest rate which reduced demand for the Australian currency and helped the US dollar to gain more grounds.

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.

Major highlights for this week that will affect the AUD/USD pair’s trading:

Monday November 14:

Both economies will not release any fundamentals, where the pair’s movements will depend on the market sentiment.

Tuesday November 15:

On Tuesday at 00:30 GMT, the Reserve Bank of Australia will release the November meeting’s minutes.

On Tuesday, the U.S. economy will release the Producer Price Index for October at 13:30 GMT, where the previous reading was up by 0.8% and it’s expected to drop by 0.2%, while the annual Producer Price Index for October is expected to come at 6.3% from the previous 6.9%.

The Advance Retail Sales for October will be released at 13:30 GMT with a previous reading of 1.1% and it’s expected to retreat to 0.2%.

At 13:30 GMT, the Empire Manufacturing for November will be released, where it’s expected to come at -4 from -8.48. The Business Inventories for September will be released at 15:00 GMT, and it’s expected to come at 0.5% in line with the previous reading.

Wednesday November 16:

On Wednesday at 23:30 GMT (Tuesday), Australia will release the Westpac Leading Index for September where it had a prior reading of 0.8%.

The U.S. economy will release the Consumer Price Index for October at 13:30 GMT, where the prior reading was 0.3% and expectations refer to 0.0%, while the annual CPI is expected to come at 3.6% from the previous 3.9%.

At 14:00 GMT the Net Long-term TIC Flows for September will be released, where it had a previous reading of $57.9 billion, as for the Total Net TIC Flows it had a previous reading of $89.6 billion.

The Industrial Production for October is due at 14:15 GMT and expected to come at 0.4% from the previous 0.2%, while the Capacity Utilization is expected to come at 77.7% from 77.4%.

Thursday November 17:

The U.S. data will start at 13:30 GMT with the housing starts for October which is expected to drop to 610 thousand from 658 thousand and Building Permits on the other hand to rise to 600 thousand from 594 thousand.

At the same time we have the weekly jobless claims for the week ending November 11 after last week they unexpectedly declined to 390 thousand.

The data will end with the Philadelphia Fed Index for November at 15:00 GMT which is expected to improve to 10.0 from 8.7.

Friday November 18:

The United States will end the week at 15:00 GMT with the Leading Indicators for October which are expected to improve to 0.5% from 0.2%.

Originally posted here