Forex AUD/USD trade predictions january 24 2012

forex trading outlook today - Forex AUD/USD trade predictions january 24 2012 : The AUD/USD pair advanced with the beginning of the week, where the U.S. dollar s still losing the advantage against aussie on eased fears over the outlook, nevertheless, the volatility is ongoing as investors are waiting for the developments from Europe and the Greek talks with lenders which any setback will trigger a strong risk aversion wave that will pressure aussie south.

Eyes turn now to Consumer price inflation after the market discarded the reported decline in producer prices today. The Australian CPI is expected to ease during the fourth quarter, which will reduce inflation pressure on the RBA and open the way for more interest rate stability during the upcoming period.

On the other hand, the Australian dollar was able to keep its gains against the dollar due to the current risk appetite in the financial market, while the interest rate expectations for the RBA could ease the sharp incline for the Aussie if the decline inflation and more weakness in the economy materialize.

On Tuesday at 23:00 GMT (Monday), Australia will release the Conference Board Leading Index for November, where the prior reading was 0.6%.

At 15:00 GMT, the U.S. economy will issue the Richmond Fed Manufacturing Index for January, where it’s expected at 5.0 from the previous reading of 3.0.
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