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Forex - AUD/USD hit by profit-taking

Published 07/11/2013, 09:51 PM
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Investing.com - The Australian dollar got stung by a bout of profit-taking and traded lower against its U.S. rival during Friday’s Asian session.

In Asian trading Friday, AUD/USD fell 0.39% to 0.9155. The pair was likely to find support at 0.9094, Wednesday's low and resistance at 0.9475, the high of June 11.

The Aussie notched one of its best performances against the greenback in weeks Thursday after data showed that Australia's economy added 10,300 jobs in June, confounding expectations for a 2,500 decline, after a 700 fall the previous month.

The report also showed that Australia's unemployment rate ticked up to 5.7% last month, from 5.6% in May. Analysts had expected the unemployment rate to remain unchanged.

Riskier currencies, such as the Aussie, were also boosted Thursday after Federal Reserve Chairman Ben Bernanke said Wednesday evening that the inflation and unemployment reports show the U.S. economy still requires highly accommodative monetary policies just hours after the release of the minutes from the Fed's June monetary policy meeting, which revealed other U.S. central bankers felt likewise.

Those remarks ignited an Aussie rally that sent AUD/USD towards 93 cents amid intense short-covering, but some of the wind has come out of that trade Friday.

Earlier Friday, the Australian Bureau of Statistics said that Australian home loans rose 1.8% in June after a 1.2% increase in May. The May reading was revised up from a 0.8% increase. Economists expected a June increase of 2.5%.

Elsewhere, AUD/JPY fell 0.13% to 90.82 while AUD/NZD fell 0.15% to 1.1686.


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