Forex - AUD/USD edges lower after Fed statement

Published 03/21/2013, 04:06 AM
Updated 03/21/2013, 04:07 AM
AUD/USD
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AUD/NZD
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Investing.com - The Australian dollar edged lower against its U.S. counterpart on Thursday, despite positive manufacturing data from China, while the Federal Reserve reiterated its commitment to its asset purchase program.

AUD/USD hit 1.0369 during late Asian trade, the session low; the pair subsequently consolidated at 1.0367, easing 0.10%.

The pair was likely to find support at 1.0344, the low of March 18 and resistance at 1.0405, Wednesday's low.

Data showed that China’s HSBC purchasing managers' index rose to 51.7 in March from 50.4 in February, indicating that the recovery in the world’s second largest economy is still on track.

China is Australia's biggest export partner.

Meanwhile, the Fed announced that it will leave monetary policy unchanged at the end of its two day policy meeting on Wednesday, in spite of recent signs that the U.S. recovery is gaining traction, citing concerns over high unemployment levels and risks from tax increases and federal government spending cuts.

Fed Chairman Ben Bernanke said the central bank may gradually wind down the pace of its bond buying, but only after the labor market shows signs of being on a more stable footing.

The Aussie was lower against the New Zealand dollar with AUD/NZD dropping 0.59%, to hit 1.2547.

Also Thursday, official data showed that New Zealand's gross domestic product rose 1.5% in the fourth quarter, beating expectations for a 0.9% rise, after a expansion of 0.2% in the previous quarter.

Later in the day, the U.S. was to release the weekly government report on initial jobless claims, as well as industry data on existing home sales and official data on manufacturing activity in Philadelphia.


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