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, John Williams, Federal Reserve Bank of San Francisco President, is about to speak in Vancouver.

In the US, Dennis Lockhart, Federal Reserve Bank of Atlanta President, is about to speak in Atlanta.

Updates: The Australian dollar was hit by a weak retail sales report – sales didn’t grow during the previous month. After the initial fall, AUD/USD rose on European strength and reconquered 1.02. The Australian dollar enjoyed a leap of 8.4% in building approval – more than expected. Also the high Chinese trade balance surplus helps.

In the US, Unemployment Claims measuring the number of Americans filing initial claims for unemployment increased by 2,000 last week to 393,000 while expected to drop to 389,000 indicating a relative stability in the Job market. A drop to 390,000 is expected.

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.

In the US, Federal Open Market Committee (FOMC) Meeting Minutes, full record of the FOMC’s last meeting, regarding interest rates financial conditions.