Investing.com - The Australian dollar strengthened against its U.S. counterpart after solid manufacturing data reports emerged worldwide that sparked a dollar-selloff and a run to risk-on currencies and stocks, while at home, Australian trade figures came in better than expected.
AUD/USD hit 1.0734 in Asian trading on Thursday, up 0.26% and up from a session low of 1.0703 and off from a high of 1.0756.
The pair sought to test support levels at 1.0570, Wednesday's low, and resistance at 1.0756, the earlier Thursday high.
Manufacturing reports out of the U.S., Europe and in China came in healthier than expected, boosting optimism that the health of the world economy may be better than once feared.
The data sent investors selling the greenback in order to invest in stocks and other assets worldwide, which sent the Aussie dollar climbing.
Meanwhile Australia's trade surplus increased to AUD1.71 billion, wider than a forecast of an AUD1.20 billion surplus, which further bolstered the currency.
"The market has taken an overly optimistic view" of global manufacturing data, said Joseph Capurso, a currency strategist in Sydney at Commonwealth Bank of Australia, according to Bloomberg.
"The so-called risk currencies like Aussie and kiwi can be very well-supported."
The Aussie dollar, meanwhile, was up against the yen and up against its New Zealand counterpart, with AUD/JPY rising 0.17% to 81.73 and AUD/NZD up 0.06% at 1.2861.
Later Thursday, the Australian Industry Group Services Index will shed light on business conditions among service-based companies, while in New Zealand, data on visitors arriving in the country will publish.
The U.S. is looking ahead to Friday's official unemployment data, although on Thursday, markets will pay attention to initial jobless claims as well as preliminary data on nonfarm productivity and unit labor costs.
Later Thursday, Fed Chairman Ben Bernanke is set to testify on the country's economy before the House budget committee.
The U.K. is to produce industry data on construction sector activity, a leading indicator of economic health.
AUD/USD hit 1.0734 in Asian trading on Thursday, up 0.26% and up from a session low of 1.0703 and off from a high of 1.0756.
The pair sought to test support levels at 1.0570, Wednesday's low, and resistance at 1.0756, the earlier Thursday high.
Manufacturing reports out of the U.S., Europe and in China came in healthier than expected, boosting optimism that the health of the world economy may be better than once feared.
The data sent investors selling the greenback in order to invest in stocks and other assets worldwide, which sent the Aussie dollar climbing.
Meanwhile Australia's trade surplus increased to AUD1.71 billion, wider than a forecast of an AUD1.20 billion surplus, which further bolstered the currency.
"The market has taken an overly optimistic view" of global manufacturing data, said Joseph Capurso, a currency strategist in Sydney at Commonwealth Bank of Australia, according to Bloomberg.
"The so-called risk currencies like Aussie and kiwi can be very well-supported."
The Aussie dollar, meanwhile, was up against the yen and up against its New Zealand counterpart, with AUD/JPY rising 0.17% to 81.73 and AUD/NZD up 0.06% at 1.2861.
Later Thursday, the Australian Industry Group Services Index will shed light on business conditions among service-based companies, while in New Zealand, data on visitors arriving in the country will publish.
The U.S. is looking ahead to Friday's official unemployment data, although on Thursday, markets will pay attention to initial jobless claims as well as preliminary data on nonfarm productivity and unit labor costs.
Later Thursday, Fed Chairman Ben Bernanke is set to testify on the country's economy before the House budget committee.
The U.K. is to produce industry data on construction sector activity, a leading indicator of economic health.