Forex - AUD/USD gains in choppy trading ahead of RBA meet

Published 12/03/2012, 09:06 PM
AUD/USD
-
EUR/AUD
-
AUD/JPY
-
Investing.com - The Australian dollar jumped up and down against the greenback in choppy trading on Tuesday ahead of a Reserve Bank of Australia, decision on interest rates with many anticipating the monetary authority to cut benchmark interest rates in wake of soft retail sales data and weak earnings.
 
In Asian trading on Tuesday, AUD/USD hit 1.0423, up 0.02%, up from a session low of 1.0418 and off from a high of 1.0434.
 
The pair was likely to test support at 1.0393, Monday's low, and resistance at 1.0490, the high from Nov. 27.

The Reserve Bank of Australia is due to announce its latest decision with interest rates later Tuesday and investors remained on tenterhooks ahead of time.

Corporate earnings have disappointed recently, fueling talk the Reserve Bank of Australia will cut benchmark interest rates to 3.00% from their current levels of 3.25%.
 
Gross operating profits at Australian companies dropped more than expected in the third quarter, official data showed on Monday.

In a report, Australian Bureau of Statistics said that Australian company gross operating profits fell 2.9% in the third quarter after contracting 0.3% in the preceding quarter whose figure was revised up from  a contraction of 0.7%.

Analysts had expected Australian CGOP to contract by 2.5% in the last quarter.
 
Australian retail sales disappointed as well.

In a report, Australian Bureau of Statistics said that Australian retail sales remained unchanged in October after gaining 0.5% in September.

Analysts had expected Australian retail sales to rise 0.4% in October.
 
While market talk favored monetary intervention, uncertainty kept the aussie jumping against its U.S. counterpart.
 
The Australian dollar, meanwhile was up against the euro and down against the yen, with EUR/AUD down 0.06% at 1.2519 and AUD/JPY down 0.13% at 85.60.
 
The Reserve Bank of Australia's move on interest rates will serve as the pair's chief steering current later.
 
 






 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.