Forex - AUD/USD edges higher amid thin trade

Published 12/16/2010, 04:28 AM
AUD/USD
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EUR/AUD
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Investing.com – The Australian dollar was higher against its U.S. counterpart on Thursday, edging up to a daily high despite domestic data showing that inflation expectations declined for a second month in December

AUD/USD hit 0.9896 during European morning trade, the daily high; the pair subsequently consolidated at 0.9890, gaining 0.20%.

The pair was likely to find support at 0.9840, Wednesday’s low and resistance at 0.9993, Wednesday’s high.

Earlier in the day, the Melbourne Institute said the median expected inflation rate fell to 2.8% from 3.1% in November. It was the first time since August that that number fell within the Reserve Bank of Australia’s target range of 2% to 3%.

In addition, the survey found the amount of consumers expecting inflation to be within the RBA's target 2%-3% band increased in the month to 15.6% from 13.9%.

The Aussie was almost unchanged against the euro, with EUR/AUD up 0.04% to hit 1.3393.

Later Thursday, the U.S. was to publish a key weekly report on initial jobless claims, as well as data on building permits, housing starts and manufacturing activity in Philadelphia.

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