The AUD/USD pair retreated last week as the Australian dollar lost momentum after the Reserve Bank of Australia cut interest rates, which reduced demand for the Aussie
The AUD/USD pair is expected to drop further as the risk aversion reduced demand for the higher-yielding currencies opening the way for the pair to drop, while the latest Australian fundamentals did not offer any support for the Aussie.
The week will start in Asia with continued reaction to the final details from Brussels after Wall Street and Europe attempted to find the support in the measures from extending the support to the IMF to the new intergovernmental pact for the euro area and other nations that might join excluding UK. The support is there but not as strong and accordingly fluctuations will be evident this week.
On Monday at 00:30 GMT, the Australian economy will release Home Loans for October which is expected to remain flat after rising 2.2% the previous month.
At the same time, the Trade Balance for October will be released and expected to show a narrowing trade surplus of A$2000 million from A$2564 million.
The U.S. economy will release the Monthly Budget Statement for November at 19:00 GMT where the deficit is expected to wider to $150 billion from $98.5 billion.