Forex - AUD/USD dips on hopes for more strong U.S. data

Published 03/11/2012, 11:20 PM
Updated 03/11/2012, 11:21 PM
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Investing.com - The Australian dollar weakened against the greenback on Monday, as strong jobs figures released in the U.S. on Friday fueled sentiment the U.S. economy will continue to surprise for the better and require less monetary stimulus measures from the Federal Reserve.

In Asian trading on Monday, AUD/USD hit 1.0533, down 0.41%, up from a session low of 1.0526 and off from a high of 1.0575.

The pair was likely to find support at 1.0510, Wednesday’s low, and resistance at 1.0664, Friday's high.

The U.S. economy added a net 227,000 nonfarm payrolls in February, outpacing expectations for a gain of 215,000.

Meanwhile, the government revised January's figures upward to 284,000 from 243,000.

The numbers fueled already growing sentiment that the U.S. Federal Reserve will hold off on plans to buy assets from banks, a stimulus measure known as quantitative easing that weakens the dollar in exchange for price stability.

The Federal Reserve is set to discuss monetary policy on Tuesday, and the Australian dollar weakened against a strengthening greenback, bolstered by waning expectations for quantitative easing.

Meanwhile, retail sales are due out on Tuesday as well, and market expectations for welcome surprises there are growing as well.

The Australian dollar was down against the euro and down against the yen, with EUR/AUD trading up 0.16% at 1.2429 and AUD/JPY down 0.71% at 86.61.

On Monday, the U.S. will release its federal budget balance, while Australia will release business confidence and home loan data.




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