RBA governor Glenn Stevens stated recently that Australian dollar should fall, or at least that it would be desirable if it fell, to around 75 US cents, so this is adding additional pressure on Aussie.
Furthermore, Australian labour market is still instable, GDP growth in third quarter was much weaker than it was expected with announcements of further slowdown by the end of the year. On the contrary, Fed gave positive outlook on US economy last week, saying that labour market is being stable, though there are some inflation concerns left. What we can expect is that Fed is about to raise its interest rates in the first part of 2015.
It is going to be another less volatile session for Aussie, tomorrow, as there will be no data releases from Australia. US session should be more volatile with Durable Goods Orders, Revised Consumer Confidence and New Home Sales figures scheduled for a release. Durable Good Orders should rise by 3.0%, while Revised Consumer Confidence figures should show small decline to 93.5 from prelim's 93.8 points. New Home Sales are expected to come at an annual rate of 461,000. Also, Final GDP data is scheduled for a release. 4.3% growth is forecasted, up from Advanced reading of 3.9%.
Figures to watch:
Durable Goods Orders/ Core Durable Goods Orders (Tuesday 14:30)
Final GDP (Tuesday 14:30)
Revised UoM Consumer Sentiment (Tuesday 15:55)
