AUD/USD Forecast Dec. 06, 2011, Fundamental Analysis

The AUD/USD pair traded in a narrow range early Monday after the pair hit its highest level in almost three weeks, as the US dollar lost ground against most of its major counterparts.

The Australian dollar advanced as a high-yielding currency against the greenback, after the cheerful news regarding the U.S. unemployment rate which came better than expectations and dropped to 8.6%.

The American data helped the risk appetite to dominate the market and reduced demand for safe haven currencies such as the US dollar. On the other hand, the new Italian plan to cut the nation’s debt increased confidence in the financial market.

On Tuesday, the Australian economy will issue the Current Account for the third quarter, where it’s expected to show a narrowing deficit of A$5600 million compare to the previous deficit of A$7419 million.

At 03:30 GMT, the Reserve Bank of Australia will announced the interest rate decision, where it’s expected that the central bank will keep the rate steady at 4.50%.

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