Forex - AUD/USD drops after weak Australian data

Published 09/03/2012, 02:53 AM
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Investing.com - The Australian dollar dropped against its U.S. counterpart on Monday, trading close to a more than one-month low following the release of weak data from Australia, while investors eyed a speech by European Central Bank President Mario Draghi, later in the day.

AUD/USD hit 1.0240 during late Asian trade, the pair’s lowest since July 25; the pair subsequently consolidated at 1.0272, dropping 0.51%.

The pair was likely to find support at 1.0214, the low of July 24 and resistance at 1.0350, the high of August 30.

Official data showed earlier that retail sales in Australia fell unexpectedly in July, ticking down 0.8% following a revised 1.2% increase the previous month.

Analysts had expected retail sales to rise 0.2% in July.

Separately, industry data showed that job advertisements in Australia dropped by 2.3% in August, after a 0.8% fall the previous month.

Official data also showed that Australian company operating profits declined by 0.7% in the second quarter, disappointing expectations for a 1% rise and following a 3.7% drop in the previous quarter.

The Aussie was also weighed by data showing that manufacturing activity in China contracted in August.

China is Australia’s biggest export partner.

Markets were awaiting a speech by ECB President Draghi later in the day, amid speculation that the central bank is working on measures to help stabilize the euro zone's sovereign debt markets ahead of its upcoming meeting on September 6.

Meanwhile, the greenback remained under pressure after Federal Reserve Chairman Ben Bernanke reiterated last Friday that the central bank was ready to provide additional policy accommodation as needed to shore up growth.

Elsewhere, the Aussie was lower against the euro with EUR/AUD climbing 0.54%, to hit 1.2249.

Trade looked likely to remain subdued on Monday, with no significant economic data releases on the calendar, while markets in the U.S. were to remain closed for the Labor Day holiday.


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