The Australian economy, with its great dependence on exports, has been hit hard by the global economic slowdown, but now finds itself well-prepared for an improvement in the global economy, especially that of the US. The aussie has benefitted from this, and has been an exceptional performer in 2012.

In the US, Elizabeth Duke, Federal Reserve Governor is due to speak in Virginia.

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, 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, Chicago Purchasing Managers’ Index (PMI); monthly managers in Chicago survey to value the business conditions for employment, new orders etc. is due to reduce down to 59.2 points from 60.4 points.

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.

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 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.

In the US, The Institute for Supply Management (ISM) Manufacturing Purchasing Managers’ Index (PMI), Survey (around 400 managers) to value the business conditions over the passing month, about to reduce by 0.3 points from last month to 55 points. And the ISM Manufacturing Prices is due to further reduce to 64.4 points.

In Canada, Raw Materials Price Index (RMPI) monthly measurement to value the price change of raw supplies acquired by manufacturers, after a rise to 6.8% on the last month this time reduce to -2.5% is expected. And in the Industrial Product Price Index (IPPI) reduce of 0.5% is expected this time.