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Forex - AUD/USD higher ahead of China data

Published 10/10/2013, 11:31 PM
Updated 10/10/2013, 11:32 PM
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Investing.com - The Australian dollar traded higher against its U.S. rival during Friday’s Asian session ahead of some important Chinese data and as traders speculate that the U.S. is close to ending a government shutdown that is now into its eleventh day.

In Asian trading Friday, AUD/USD added 0.29% to 0.9481. The pair was likely to find support at 0.9289, the low of October 1 and resistance at 0.9484, the high of October 8.

China, the world’s second-largest economy, is due to release key export and import data. Chinese imports probably rose 7% in September from a year earlier after increasing by the same amount the previous month, Bloomberg reported.

Economists are forecasting 5.5% export growth for September after a 7.2% in August. China is Australia’s largest export market and bullish data this weekend could open the door to further Aussie gains. Over the past week, the Aussie is one of the top-performing developed market currencies.

The Aussie and some other riskier currencies were also supported by Thursday’s risk-on session in the U.S. that was sparked by speculation the world’s largest economy is inching towards reopening the government and will avert a debt ceiling crisis.

U.S. Treasury Secretary Jack Lew reiterated Thursday that the U.S. will reach its debt ceiling on Oct. 17 and warned that the political crisis is starting to hurt the economy. The comments came during testimony to the Senate finance committee.

It is expected leaders from both parties will be meeting with President Obama at the White House tonight to hammer out a deal to reopen the deal before the deadline for extending the debt ceiling arrives on October 17.

Elsewhere, AUD/JPY climbed 0.65% to 93.41 while AUD/NZD inched up 0.05% to 1.1420.


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