The US dollar weakened against most major currencies following Bernanke’s announcement that  interest rates will likely remain near zero until late 2014. However, the global slowdown has taken its toll on the Australian export sector, and the aussie may run out of steam as a result.

In the US, Factory Orders, production leading indicator to value the new manufacturers’ orders over the past month, rise is expected from -0.4% up to 1.9%

The markets may have bid farewell to 2011, but the European debt crisis hasn’t gone anywhere far, and continues to weighs heavily on risk currencies such as the Australian dollar.  EUR/USD ended the year 400 pips lower, and if investors continue to flock to the US dollar for safety, the aussie could weaken.

In the US, The Institute for Supply Management (ISM) Non-Manufacturing Purchasing Managers’ Index (PMI); Monthly Survey to value the business conditions such as new orders, employment etc., a rise is expected 52.9 points on November up to 53.6 points now.

In the US, FOMC Statement, the key tool that is used by the FOMC regarding monetary policy with investors, and regarding  financial conditions for  other policy measures. It also discusses the outcome of upcoming votes on monetary outlook.

The moderate rise in prices leaves room for a rate cut that will weaken the Aussie. On the other hand, the fresh signs of strength from China helped the Australian dollar. We have more data from China alongside Australian data.

In the US, Ben Bernanke testifies at the Joint Economic Committee, in Washington DC. His words have a major impact on the market.

More signs of slowdown in China and the double downgrade for New Zealand weighed on the Aussie. As risk aversion eventually took over, the Aussie, which is considered a risk currency, dropped as well.Apart from the rate decision, housing figures will be of interest this week.

The Aussie was buoyed by Thursday’s release of higher than expected Australian retail sales.  Positive manufacturing data out of China also helped to drive the AUD, easing concerns of a stalling economic recovery in China.  With the RBA expected to leave interest rates unchanged at the next meeting, the AUD has been increasing against the USD.

In Europe, Retail Sales, key gauge for consumer spending and affected the overall economic activity; about to reduce from 0.7% on August to 0.1% now.