The AUD/USD pair soared last week to record its highest level in almost three weeks, as the US dollar dropped against most of its major counterparts which opened the way for the Aussie to record more gains.
The risk appetite returned to the market and supported higher-yielding currencies such as the Aussie, which used the chance to cover some of its previous losses against the greenback.
The global equities rally supported the Australian dollar, which still has a higher interest rate compared to other major currencies that helped Aussie to be the biggest winner last week.
Confidence returned once again into the financial market, as six major central banks lowered the borrowing dollar swap rate for banks, which increase optimism between investors.
The AUD/USD pair could continue its upside movement with a little correction to the downside, but with any change in the current sentiment the US dollar could restore its momentum and return to dominate the FX market.
Major highlights for this week that will affect the AUD/USD pair’s trading:
Monday December 05:
On Monday at 22:30 GMT (Sunday), the Australian economy will release the AiG Performance of Service Index for November, where it had a previous reading of 48.8.
At 00:30 GMT the ANZ Job Advertisements for November will be published, where it had a prior reading of 0.7%.
At 15:00 GMT the U.S. economy will release the ISM Non-Manufacturing for November, where it’s expected to come at 53.5 from the previous reading of 52.9.
On the other hand, Factory Orders for October will be released at the same time and expected to remain flat following 0.3% rise the previous month.
Tuesday December 06:
The Australian economy will issue the Current Account Balance for the third quarter, where it’s expected to show a deficit of A$5600 million narrowing from the previous deficit of A$7419 million.
At 03:30 GMT, the Reserve Bank of Australia will release its interest rate decision and the RBA is expected to hold rates steady at 4.50%.
Wednesday December 07:
On Wednesday at 22:30 GMT (Tuesday), Australia will issue the AiG Performance of Construction Index for November, where it had a prior reading of 34.7.
At 00:30 GMT, Australia will release Gross Domestic Product for the third quarter, where it’s expected to show the economy expanded 1.2% the same as the previous reading. While the annual Gross Domestic Product is expected to grow by 2.3% compare to the previous reading of 1.4%.
The U.S. economy will release the Consumer Credit for October at 20:00 GMT, where it’s expected to come at $7.00 billion compare to the previous reading of $7.386 billion.
Thursday December 08:
On Thursday at 00:30 GMT, the Australian economy will release the Unemployment Rate for November, where it’s expected to hold at 5.2%.
As for the Employment Change in Australia, it’s expected to come at 10.0 thousand from the previous 10.1 thousand.
At 13:30 GMT the U.S. economy will issue its weekly initial jobless claims numbers, where the number of people filing for first-time claims for the state unemployment insurance increased 402 thousand last week.
The Wholesale Inventories for October will be published at 15:00 GMT, where it’s expected to come at 0.3% compare to the previous reading of –0.1%.
Friday December 09:
On Friday, the U.S. economy will release the Trade Balance for October, where it’s expected to show a deficit of $44.0 billion widening from the previous deficit of $43.1 billion.
The University of Michigan Confidence for December will be released at 14:55 GMT and expected to slow to 63.0 from 64.1.