Forex - AUD/USD edges higher, gains limited

Published 03/01/2012, 02:58 AM
AUD/USD
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EUR/AUD
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Investing.com - The Australian dollar edged higher against its U.S. counterpart on Thursday, but gains were limited as investors locked in profits after a liquidity operation by the European Central Bank briefly supported risk sentiment.

AUD/USD hit 1.0764 during late Asian trade, the daily high; the pair subsequently consolidated at 1.0739, adding 0.08%.

The pair was likely to find support at 1.0688, the low of February 17 and resistance at 1.0793, the high of February 3.

The ECB allotted EUR529.5 billion in three-year loans to 800 lenders in its second long-term refinancing operation on Wednesday, as concerns over the long-term effectiveness of the liquidity boost weighed.

Meanwhile, the greenback remained supported after Federal Reserve Chairman Ben Bernanke dampened expectations for fresh easing measures to support the U.S. economy.

In Australia, official data showed earlier that building approvals rose far less-than-expected in January, ticking up 0.9% after a 1% decline the previous month. Analysts had expected building approvals to rise 2.1% in January.

A separate report showed that private capital expenditure in Australia fell unexpectedly in the fourth quarter, ticking down 0.3% after a 14.6% surge the previous quarter.

Analysts had expected private capital expenditure to rise 3.5% in the fourth quarter.

Elsewhere, the Aussie was higher against the euro with EUR/AUD declining 0.17%, to hit 1.2395.

Later in the day, the U.S. was to release government data on unemployment claims, while the Institute for Supply Management was to produce a report on manufacturing activity. In addition, Ben Bernanke was due to testify for a second day before Congress.


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