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Forex - AUD/USD edges lower as sentiment wanes

Published 11/01/2012, 03:51 AM
Updated 11/01/2012, 03:52 AM
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Investing.com - The Australian dollar edged lower against its U.S. counterpart on Thursday, as ongoing concerns over financial troubles in Spain and in Greece continued to weigh on market sentiment.

AUD/USD hit 1.0355 during European morning trade, the daily low; the pair subsequently consolidated at 1.0360, falling 0.14%.

The pair was likely to find support at 1.0330, the low of October 30 and resistance at 1.0412, the high of October 18.

Investors remained cautious amid uncertainty over when Spain may request a bailout and whether Greece will secure the next tranche of its bailout funding.

The Aussie found some support however after official data showed that China’s manufacturing purchasing managers’ index came in at 50.2 in October, up from 49.8 in September, just slightly below forecasts for a reading of 50.3.

A separate report showed that the final reading of China’s HSBC PMI came in at 49.5 in September, an eight month high.

China is Australia's biggest export partner.

In Australia, official data earlier showed that import prices fell more-than-expected in the third quarter, declining 2.4% after a 2.4% rise in the previous quarter.

Analysts had expected import prices to tick down 1.2% in the third quarter.

Elsewhere, the Aussie was fractionally higher against the euro with EUR/AUD inching down 0.07%, to hit 1.2483.

Later in the day, the U.S. was to release the ADP report on nonfarm payrolls, as well as the weekly government report on initial jobless claims. In addition, the Institute of Supply Management was to publish data on U.S. manufacturing activity.


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