Forex - AUD/USD continues to build on recent gains

Published 07/28/2013, 09:46 PM
Updated 07/28/2013, 09:47 PM
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AUD/JPY
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Investing.com - The Australian dollar, in the midst of a two-week wining streak against its U.S. rival, continued to trade slightly higher against the greenback during Monday’s Asian session despite a tepid reading of Chinese industrial sector profits.

In Asian trading Monday, AUD/USD rose 0.11% to 0.9274.The pair was likely to find support at 0.9036, the low of July 15 and resistance at 0.9318, last Wednesday's high.

China’s National Bureau of Statistics said Friday that profits at Chinese industrial firms rose 6.3% in June. That is a significant decrease from the 15.5% surge seen in May. Industrial profits in the world’s second-largest economy rose 11.1% in the first six months of this year compared with a growth of 12.3% in the first five months.

Among the 41 industry groups surveyed in the report, 30 showed higher profits while one posted a loss. China’s current monetary policy is aimed at stimulating growth in the so-called real economy while squeezing speculative real estate investments that have inflated property values despite excess supply.

AUD/USD is still in the middle of its first consecutive weekly gains since March, though those gains could be threatened this week with monetary policy minutes due out from the Federal Reserve and the July jobs report due out from the U.S. Labor Department on Friday.

Commitment of traders data also show net short positions in the Aussie remain near record highs. While the Reserve Bank of Australia left rates unchanged at 2.75%, a record low, following its meeting earlier this month, some traders are speculating the slowing Australian economy could force RBA to cut rates again.

Elsewhere, AUD/JPY fell 0.44% to 90.67 while AUD/NZD inched down 0.06 % to 1.1457.


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