AUD/USD Forecast Dec. 16, 2011, Fundamental Analysis

, as Aussie lost more ground against the U.S. dollar due to risk aversion that controlled the FX market during the latest period.

The U.S. dollar is the main focus in the FX market as a safe haven currency, after the latest decisions from the EU leaders did not provide confidence in the financial market, which opened the way for lower-yielding currencies to record more gains.

The AUD/USD pair is expected to drop further, as the risk aversion reduced demand for the higher-yielding currencies opening the way for the pair to drop, while the latest Australian fundamentals did not offer any support for the Aussie, which continued to decline versus the dollar.

On Friday, the U.S. economy will release the Consumer Price Index for November at 13:30 GMT, where the prior reading was down by 0.1% and expected to come at 0.1%. As for the annual reading it’s expected to remain steady at 3.5%.