Forex - AUD/USD higher but gains limited

Published 07/10/2013, 02:49 AM
Updated 07/10/2013, 02:54 AM
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Investing.com - The Australian dollar was higher against its U.S. counterpart on Wednesday, but gains were expected to remain limited by tepid Chinese trade balance data, while markets eyed the minutes of the Federal Reserve's latest policy meeting later in the day.

AUD/USD hit 0.9218 during late Asian trade, the pair's highest since July 2; the pair subsequently consolidated at 0.9195, adding 0.20%.

The pair was likely to find support at 0.9084, Tuesday's low and resistance at 0.9250, the high of July 2.

Official data showed that Chinese exports fell unexpectedly in June from a year earlier, fuelling concerns over a slowdown in global demand. Imports were also lower on a year-over-year basis, indicating that domestic demand was weakening.

China is Australia's biggest export partner.

In Australia, the Westpac Banking Corporation said consumer sentiment fell 0.05% in July, following a 4.70% increase the previous month.

Meanwhile, demand for the greenback remained supported by expectations that the Fed will start to unwind stimulus measures as the economy continues to pick up.

The Aussie was higher against the euro with EUR/AUD slipping 0.13%, to hit 1.3909.

The Fed was to release the minutes of its June policy meeting later in the day, while a speech by Fed Chairman Ben Bernanke was also in focus.


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