Forex - AUD/USD edges higher on positive Chinese data

Published 05/08/2013, 02:55 AM
Updated 05/08/2013, 02:59 AM
AUD/USD
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AUD/NZD
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Investing.com - The Australian dollar edged up against its U.S. counterpart on Wednesday, pulling away from two-months lows after the release of positive trade data out of China, while markets continued to speculate over a potential rate cut by the European Central Bank.

AUD/USD hit 1.0197 during late Asian trade, the session high; the pair subsequently consolidated at 1.0197, adding 0.14%.

The pair was likely to find support at 1.0115, the low of March 4 and a two-month low and resistance at 1.0252, Tuesday's high.

Official data showed that Chinese imports and exports rose more than expected in April, indicating that the outlook for economic growth remains good.

China's exports rose 14.7% year-on-year last month, while imports grew 16.8%, bringing the country’s trade surplus to USD18.6 billion for the month, above expectations for a surplus of USD 15.05 billion.

China is Australia's biggest export partner.

Meanwhile, investors continued to eye the ECB's next move amid growing expectations for another rate cut after the central bank's president Mario Draghi said Monday the ECB would monitor all euro zone economic data in the coming weeks and was ready to act if needed.

The Aussie was sharply higher against the New Zealand dollar with AUD/NZD rallying 0.91%, to hit 1.2152.

Also Wednesday, in the Reserve Bank of New Zealand's May 2013 Financial Stability Report, RBNZ Governor Graeme Wheeler said developments in private sector credit and the housing market point to increasing risks to financial stability in New Zealand.

The comments sparked fresh speculation over a potential rate cut by the central bank at its next policy meeting.


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