In the US, CB Consumer Confidence increased more than predicted to 64.5 in December from 55.2 in November indicating an elevated confidence among households. A further improvement to 68.2 is expected now.

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.

AUD/USD has been marked by great volatility throughout 2011, but traders would be wise to recall that at the  end of the day, the pair has recorded a 1% loss for the year to date. Thus the wild fluctations of the pair are clearly somewhat deceiving, when the movement of the pair is examined with some perspective.

In the US, Automatic Data Processing, Inc. (ADP) Non-Farm Employment Change, measures the number of employed people over the last month (without government & farming industry), rise is expected from 110K on October up to 131K.

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.

 In the US, Revised University of Michigan (UoM) Consumer Sentiment, monthly survey about to rise from 57.8 points to 57.9 points. Meanwhile the Revised UoM Inflation Expectations is expected 3.7% with no change from the previous time.

The big blow for the Aussie came from Ben Bernanke’s twist. As a risk currency that is also dependent on commodities, the Aussie was hit bad. Also Chinese weakness didn’t really help.

In the US, Automatic Data Processing, Inc. (ADP Non-Farm Employment Change, vale the employed people without government & farming business on the passing month, reduce of 7K is predicted to 103K.

The assumption about no new QE in the US hurt the Aussie, but when markets changed their mind, things turned for the better in AUD/USD. The Australian dollar got a boost from a better-than-expected number in China – HSBC’s PMI came out better than expected. We’ll now get the official release.