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Forex - AUD/USD falls on growth worries, Australian data

Published 06/04/2012, 02:45 AM
AUD/USD
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EUR/AUD
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Investing.com - The Australian dollar fell against its U.S. counterpart on Monday, as sustained concerns over the debt crisis in the euro zone and global economic growth weighed on risk sentiment while Australia released downbeat data.

AUD/USD hit 0.9628 during late Asian trade, the daily low; the pair subsequently consolidated at 0.9658, declining 0.43%.

The pair was likely to find support at 0.9579, the low of June 1 and a six-month low and resistance at 0.9733, the high of June 1.

Investor confidence remained vulnerable after the U.S. Department of Labor said on Friday that the economy added just 69,000 jobs in May, far below expectations for a gain of 150,000, while the unemployment rate ticked up to 8.2% from 8.1%.

The weak data added to concerns that the economic recovery in the U.S. is losing momentum and fuelled speculation over the possibility of a third round of quantitative easing from the Federal Reserve.

Markets were also eyeing developments in the euro zone, after data showed that unemployment in the single currency bloc rose to a record high of 11% in April and as fears that Spain may soon require an international bailout persisted.

In Australia, official data showed earlier that company operating profits fell more-than-expected in the first quarter, dropping 4% after a 6.4% slump the previous quarter. Analysts had expected company operating profits to fall 2.1% in the first quarter.

The report came after data showed that job advertisements in Australia declined by 2.4% in May after a 0.8% fall the previous month.

Elsewhere, the Aussie was lower against the euro with EUR/AUD adding 0.21%, to hit 1.2849.

Later in the day, the U.S. was to produce official data on factory orders.


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