AUD/USD Forecast Dec. 21, 2011, Fundamental Analysis

The AUD/USD pair advanced early Tuesday as the RBA’s December meeting minutes supported the Aussie and opened the way for more gains for the pair.

The minutes were less dovish than expected which cut expectations of another rate cut during the next meeting, supporting the Australian dollar got supported to cover some of its previous losses against the dollar.

The Reserve Bank of Australia showed that the global economy is still growing despite the current EU crisis, while eased worries over the outlook for Korea supported Asian stocks to cover its prior losses and accordingly buoyed Aussie’s gains.

On Wednesday at 23:30 GMT (Tuesday), Australia will release the Westpac Leading Index for October, where the previous reading was down by 0.3%.

The U.S. economy will release the Existing Home Sales for November at 15:00 GMT and it’s expected to advance 2.4% to 5.09 million from 4.97 million.