The AUD/USD pair tried to cover some of its previous losses with slight gains early Wednesday, where the pair is trading near its lowest level in two weeks as the greenback soared against other major currencies.
The Strong US dollar was supported by two factors: the risk aversion which dominated the FX market and increased demand for the safe haven dollar, and the other factor is the FOMC decision which did not carry any surprise to the market, keeping the greenback on the upside track.
Aussie was able to record some gains against the greenback before the FOMC meeting, in a correctional move and supported by slight relief after a successful bond sale from Spain and the EFSF but the effect did not last as the overall debt woes remain strong.
On Thursday at 23:30 GMT (Wednesday) Australia will release the Consumer Inflation Expectation for December, which had a previous reading of 2.5%.
The U.S. economy will release the Producer Price Index for November at 13:30 GMT where it’s expected to come at 0.2% from the previous reading of -0.3%. The annual Producer Price Index is expected to rise to 6.0% from the previous reading of 5.9%.
The U.S. Current Account Balance for the third quarter will be up at 13:30 GMT and the deficit is expected to narrow to $107.7 billion from the previous deficit of $118.0 billion.
The Empire Manufacturing Index for December will be released at 13:30 GMT where it’s expected to come at 2 from the prior reading of 0.61.
At 13:30 GMT, U.S. economy will issue its weekly initial claims numbers, where the number of people filing for first-time claims for the state unemployment insurance increased 381 thousand last week.
The Net Long-term TIC Flows for October will be up at 14:00 GMT, where the previous reading was $68.6 billion, as for the Total Net TIC Flows it had a previous reading of $57.4 billion.
The U.S. Industrial Production for November will be released at 14:15 GMT, where it’s expected to come at 0.2% from the previous of 0.7%. The Capacity Utilization for November is expected to come at 77.9% from the prior 77.8%.
The Philadelphia Fed index is due at 15:00 GMT for December and expected to rise to 5.0 from 3.6.