The AUD/USD pair reached its lowest level in two weeks due to the strong US dollar which dominated the market, as the risk aversion controlled investors.
The latest RBA decision to cut the interest rate to 4.25% reduced demand for the Australian dollar. The RBA will release its Board meeting minutes for December which will show the reasons behind cutting interest rates.
The EU sovereign debt crisis is still in the picture, where the latest developments from the ECB and EU leaders’ were not convincing for investors, who still expecting further worsening in the EU region that might affect the global financial and economic stability.
On Monday both economies are not due to release any major fundamentals leaving the focus on the market sentiment.