Investing.com - The Australian dollar traded lower against its U.S. rival during Friday’s Asian session as traders prepare for a tapering announcement from the Federal Reserve as soon as next week.
In Asian trading Friday, AUD/USD fell 0.31% to 0.9243. The pair was likely to find support at 0.9117, the low of September 6 and resistance at 0.9480, the high of June 10.
Amid some solid economic data out of China, Australia’s largest export market, the Aussie had gained strength against the greenback in recent weeks. However, some of the air came out of that trade Thursday when data showed that the Australian economy cut 10,800 jobs in August, after a downwardly revised 11,400 decline the previous month. Analysts had expected 10,000 jobs to be created last month.
Australia's unemployment rate ticked up to 5.8% in August, from 5.7% in July, in line with expectations. In a separate report, the Melbourne Institute said inflation expectations slipped to 1.5% in August, from 2.3% the previous month.
Additionally, the Aussie and other riskier currencies as seen as vulnerable to the Fed’s plans to pare its USD85 billion-per-month bond-buying efforts because Fed easing is believed dollar negative.
Data out of the U.S. confirms the Fed has room to taper. In U.S. economic news out Thursday, initial claims for jobless benefits fell by 31,000 to 292,000 last week. Economists expected a reading of 330,000 claims. The less volatile four-week moving average fell to 321,250 from 328,750. That is the lowest reading since October 2007.
It is believed that if the Fed does taper, it will reduce its bond purchases to USD75 billion per month.
Elsewhere, AUD/JPY fell 0.21% to 92.08 while AUD/NZD inched up 0.04% to 1.1399.
In Asian trading Friday, AUD/USD fell 0.31% to 0.9243. The pair was likely to find support at 0.9117, the low of September 6 and resistance at 0.9480, the high of June 10.
Amid some solid economic data out of China, Australia’s largest export market, the Aussie had gained strength against the greenback in recent weeks. However, some of the air came out of that trade Thursday when data showed that the Australian economy cut 10,800 jobs in August, after a downwardly revised 11,400 decline the previous month. Analysts had expected 10,000 jobs to be created last month.
Australia's unemployment rate ticked up to 5.8% in August, from 5.7% in July, in line with expectations. In a separate report, the Melbourne Institute said inflation expectations slipped to 1.5% in August, from 2.3% the previous month.
Additionally, the Aussie and other riskier currencies as seen as vulnerable to the Fed’s plans to pare its USD85 billion-per-month bond-buying efforts because Fed easing is believed dollar negative.
Data out of the U.S. confirms the Fed has room to taper. In U.S. economic news out Thursday, initial claims for jobless benefits fell by 31,000 to 292,000 last week. Economists expected a reading of 330,000 claims. The less volatile four-week moving average fell to 321,250 from 328,750. That is the lowest reading since October 2007.
It is believed that if the Fed does taper, it will reduce its bond purchases to USD75 billion per month.
Elsewhere, AUD/JPY fell 0.21% to 92.08 while AUD/NZD inched up 0.04% to 1.1399.