The central bank surprised the markets last week by maintaining interest rates at 4.25%. The markets had predicted a 0.25% cut, which would have likely pushed the aussie downwards.

In the US, Unemployment Claims, weekly report to value the unemployed that filed for insurance, due to reduce by 10K from the last month down to 389K.

Updates: The Aussie dipped under 1.03 as the ANZ Job Advertisements dropped by 0.9%, triggering worries about employment. It managed to climb back up as home loans rose by 1.4%. The better than expected Chinese GDP (8.9% annualized) certainly gave a boost to the Aussie that touched 1.0450 before sliding lower. Australian New Motor Vehicle Sales disappointed with a big drop of 2.9%. This prevented another move upwards. AUD/USD is struggling around 1.04. Australian employment data disappointed with a drop of nearly 30K jobs, although it’s important to note that full time jobs were actually on the rise. AUD/USD managed to rise above 1.04 once again, also on the European optimism.

In the US, Unemployment Claims, measures the unemployment insurance that was filed on the last month, predicted to rise by 8K up to 389K

After a sluggish 2011, the Australian economy is expected to post a respectable growth rate of  4 per cent in 2012. The news from down under is not all good however, as the debt crisis in Europe will wipe out $20 billion from expected revenue over the next four years. The outlook for the Aussie is cautiously positive, as there is renewed hope that European leaders will act forcefully to get the debt crisis under control.

In the US, Ben Bernanke, Federal Reserve Chairman, is due to lecture in Washington DC

Glenn Stevens acknowledged the global slowdown and easing inflation and cut the interest rate to 4.50%. This weighed heavily on the pair, as well as no new hints on QE3 in the US.

In the US, Unemployment Claims, weekly measurement to value the persons that had filed for unemployment insurance, rise is expected from 401K on the last week to 407K now.

The Australian dollar fell to a one year month low against the greenback on global worries and some hints of a rate cut in the monthly rate decision. On the other hand, retail sales, building approvals and trade balance all provided upside surprises.

In the US, Inflation rate, Headline inflation increased by 0.5% in July following 0.2% decrease in the previous month. This reading was above the 0.2% increase predicted. Meanwhile, Core prices increased by 0.2% in July in line with expectations following 0.3% rise in June. CPI is expected to increase again by 0.2% while Core CPI is predicted to climb 0.3%.