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Forex - AUD/USD edges higher after upbeat Australian data

Published 07/01/2015, 02:41 AM
Aussie rises moderately vs. greenback, Australian data supports
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Investing.com - The Australian dollar edged higher against its U.S. counterpart on Wednesday, after upbeat building approvals data from Australia, although demand for the safe-haven greenback remained broadly supported amid Greek debt concerns.

AUD/USD hit 0.7738 during late Asian trade, the pair's highest since June 26; the pair subsequently consolidated at 0.7714, adding 0.12%.

The pair was likely to find support at 0.7656, Tuesday's low and resistance at 0.7756, the high of June 25.

The Australian Bureau of Statistics reported on Wednesday that building approvals rose by 2.4% in May, beating expectations for an increase of 1.0%. The change in building approvals for April was revised to a 5.2% drop from a previously estimated 4.4% decline.

Also Wednesday, data showed that China's final HSBC Manufacturing Purchasing Managers' Index slipped to 49.4 last month from 49.6 in May, remaining in contraction territory for the third consecutive month.

China is Australia's biggest export partner.

Meanwhile, the greenback remained supported after Greece requested a new two-year bailout program on Tuesday, just hours ahead of a deadline for what looked to be an almost certain debt default by Athens.

The Greek government requested a new bailout from the European Stability Mechanism to cover the country’s financial need for the next two years, which would run alongside debt restructuring.

Greece’s existing bailout program officially expires at midnight and €1.6 billion loan repayment to the International Monetary Fund is due at the same time.

Without a rescue package in place Athens will almost certainly fall into arrears. Earlier in the day Greek Finance Minister Yanis Varoufakis said Athens would not make the deadline for the repayment.

The Aussie was higher against the euro, with EUR/AUD slipping 0.22% to 1.4431.

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