AUD/USD Forecast Jan. 02, 2012, Fundamental Analysis

The AUD/USD pair fluctuated last week as the US dollar dominated the FX market, after risk aversion returned to the financial market to increase demand for safer assets.

The higher-yielding currencies retreated against the greenback and the yen, as a result of the weak risk appetite in the FX market, where the US dollar was the big winner after investors considered it the safe haven currency in the market along with the Japanese yen.

The main trend in the market remains for further gains for safer assets such as the yen and the greenback, as the escalating EU debt crisis did not show any clear signs of finding an appropriate resolution for the current predicament.

On Monday, both economics will not issue any fundamental due to the New Year holiday, where low volume will dominate the pair’s movement.

Leave a Reply

Your email address will not be published. Required fields are marked *