The AUD/USD pair soared to its highest level in two months after the Chinese GDP data supported the Aussie against the greenback, since China is number one trade partner for Australia.
The Australian dollar was able to cover its previous losses against the greenback after China expanded by 8.9 % during the fourth quarter, adding more positive signs for the global demand recovery.
On the other hand, the U.S. dollar dropped against most of its major counterparts, as the Chinese data helped the market to correct to the upside after the long downside wave which has been witnessed in the markets due to the latest EU debt crisis development.
On Wednesday at 23:30 GMT (Tuesday), the Australian economy will release the Westpac Leading Index for November, where the prior reading was 0.1%.
At 13:30 GMT, the U.S. economy will release the Producer Price Index for December, where the prior reading was 0.3% and expected to come at 0.1%, on the other hand the annual Producer Price Index had a prior reading of 5.7% and it’s expected to come at 5.1%.
The Total Net TIC Flows for November will be released at 14:00 GMT, with a previous reading of -$48.8 billion, while the Net Long-term TIC Flows had a previous reading of $4.8 billion.
The U.S. Industrial Production for December will be released at 14:15 GMT, and expected at 0.5% after 0.2% drop. The Capacity Utilization for December had a prior reading of 77.8% with expectations to rise to 78.1%.