Investing.com - The Australian dollar edged higher against its U.S. counterpart on Thursday, but gains were limited as markets were jittery after the unexpectedly high demand met by the European Central Bank for its three-year loan package.
AUD/USD hit 1.0119 during late Asian trade, the daily high; the pair subsequently consolidated at 1.0117, gaining 0.14%.
The pair was likely to find support at 0.9979, the low of December 13 and resistance at 1.0183, the high of November 16.
Market sentiment waned as investors were not convinced the ECB’s unprecedented loan operation would help increase bond purchases from indebted euro zone countries.
The central bank allotted EUR489.19 billion, the largest amount ever allotted for a long-term refinancing operation, in an attempt to avoid a liquidity crunch in the single currency bloc.
But the unexpected heavy demand from 523 European lenders highlighted the severity of the region’s financial crisis and its effects on the banking industry.
Elsewhere, the Aussie was higher against the New Zealand dollar with AUD/NZD rising 0.14%, to trade at 1.3125.
Also Thursday, official data showed that New Zealand’s gross domestic product rose more-than-expected in the third quarter by 0.8%.
Later in the day, the U.S. was to publish its weekly report on initial jobless claims, as well as revised data on third quarter GDP. The University of Michigan was also to release revised data on consumer sentiment and inflation expectations.
Trading volumes were expected to decline because many traders have closed books to lock in profit before the end of the year, reducing liquidity in the market and increasing the volatility.
AUD/USD hit 1.0119 during late Asian trade, the daily high; the pair subsequently consolidated at 1.0117, gaining 0.14%.
The pair was likely to find support at 0.9979, the low of December 13 and resistance at 1.0183, the high of November 16.
Market sentiment waned as investors were not convinced the ECB’s unprecedented loan operation would help increase bond purchases from indebted euro zone countries.
The central bank allotted EUR489.19 billion, the largest amount ever allotted for a long-term refinancing operation, in an attempt to avoid a liquidity crunch in the single currency bloc.
But the unexpected heavy demand from 523 European lenders highlighted the severity of the region’s financial crisis and its effects on the banking industry.
Elsewhere, the Aussie was higher against the New Zealand dollar with AUD/NZD rising 0.14%, to trade at 1.3125.
Also Thursday, official data showed that New Zealand’s gross domestic product rose more-than-expected in the third quarter by 0.8%.
Later in the day, the U.S. was to publish its weekly report on initial jobless claims, as well as revised data on third quarter GDP. The University of Michigan was also to release revised data on consumer sentiment and inflation expectations.
Trading volumes were expected to decline because many traders have closed books to lock in profit before the end of the year, reducing liquidity in the market and increasing the volatility.