The AUD/USD pair covered some of its previous losses, as the US dollar retreated slightly against other majors after in a correctional movement after its prior gains.
Moody’s Investors Service announced it may put the ratings of eight Spanish banks on review for possible downgrades, which fueled concerns about the spread of the sovereign debt crisis in the EU region.
The current market sentiment added more pressure on the higher-yielding assets, as investors preferred the safest assets in the current unstably financial market, which increase demand for the US dollar and the Japanese yen as safe haven currencies over the short term.
On the other hand, the Asian shares dropped on the bets that the EU summit’s measures may fail to solve the EU sovereign debt crisis, which increased pressure on the Australian dollar and prevent it from recording more gains.
On Wednesday at 23:30 GMT (Tuesday), Australia will release Westpac Consumer Confidence for December, where it had a previous reading of 6.3%, while the Westpac Consumer Confidence Index had a prior reading of 103.4.
At 13:30 GMT, the U.S. economy will release the Import Price Index for November, which had a previous reading of –0.6% and expected to come at 0.9%.