By FX Empire.com
The AUD/USD pair fell to its lowest level in five weeks affected by the current market sentiment which reflects the investors’ fears of further slowdown in the global growth due to EU debt crisis and the sluggish recovery in developed economies.
The Aussie continued its downside movement against the green back for the third consecutive week, where the greenback found enough support from investors to soar against other majors as a safe haven currency.
On the other hand, Aussie lost momentum after the Reserve Bank of Australia lowered the interest rate and indicated that they will keep the rate at those levels till the end of the year, which reduced demand for the Australian currency.
The Chinese economy also reduced demand on raw materials from Australia, as a result of their policy to cool down the economy in order to fight the current inflation pressure, which affected negatively on the Australian economy that is considered China’s biggest trade partner.
The volatility is likely to remain dominant for the AUD/USD this week with the focus still on Europe. Nevertheless, we still see the possibility for a relief correctional move if investors see any hope for movement from Europe.
Major highlights for this week that will affect the AUD/USD pair’s trading:
Monday November 21:
At 15:00 GMT, the U.S. economy will release the Existing Home Sales for October, where it’s expected to come at 4.80 million down by 2.2% from the previous reading of 4.91 million which is down by 3.0%.
Tuesday November 22:
On Tuesday at 13:30 GMT, the U.S. economy will release the annualized Gross Domestic Product for the third quarter, where it’s expected unrevised at 2.5%.
The Personal Consumption for the third quarter is also expected unrevised at 2.4% as well as the Core Personal Consumption Expenditure to hold at 2.1%.
At 19:00 GMT, the Federal Reserve Bank will release its minutes for the Nov. 1-2 FOMC meeting.
Wednesday November 23:
On Wednesday at 23:00 GMT (Tuesday), the Australian economy will release the Conference Board Leading Index for September, where it had a previous reading of -0.1%.
At 00:30 GMT, Australia will issue the Construction Work Done for the third quarter, which had a prior reading of 0.7%.
On Wednesday at 13:30 GMT, the U.S. economy will release the Durable Goods Orders for October, which is expected to come at -1.0% from the previous -0.8%.
Also the Personal Income for October will be released at the same time and expected to improve to 0.3% from 0.1% while the U.S. Personal Spending is expected to slow to 0.3% from 0.6%.
The annual Personal Consumption Expenditure Core for October is expected to come at 1.7% compare to the previous reading of 1.6%.
At 13:30 GMT, the U.S. economy will issue its weekly initial claims, where the number of people filing for first-time claims for the state unemployment insurance fell to 388 thousand last week.
Finally, the U.S. economy will release the University of Michigan Confidence for November at 14:55 GMT, where the final reading is expected to come at 64.5 from the prior reading of 64.2.
Thursday November 24:
Both economies will not release any data on Thursday, while U.S. markets will be closed for Thanksgiving Holiday.
Friday November 25:
Both economies will not release any data on Thursday, while U.S. markets are still scheduled for an early closing for Thanksgiving Holiday.
Originally posted here