Forex - AUD/USD hits 8-day low on Australian data, Fed

Published 05/02/2013, 02:53 AM
Updated 05/02/2013, 02:55 AM
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Investing.com - The Australian dollar fell to an eight-day low against its U.S. counterpart on Thursday, after the release of downbeat building approvals data from Australia, while comments by the Federal Reserve lent support to the greenback.

AUD/USD hit 1.0225 during late Asian trade, the pair's lowest since April 23; the pair subsequently consolidated at 1.0236, shedding 0.39%.

The pair was likely to find support at 1.0211, the low of March 11 and resistance at 1.0285, the session high.

Official data showed that building approvals in Australia dropped 5.5% in March, confounding expectations for a 1.3% increase, after a 3.0% rise the previous month.

Meanwhile, the greenback strengthened after the Federal Reserve recommitted to its USD85 billion a month asset purchase program and indicated that it could increase or decrease the monthly amount as deemed necessary.

"The Committee is prepared to increase or reduce the pace of its purchases to maintain appropriate policy accommodation as the outlook for the labor market or inflation changes," the Fed statement said.

Investors were also looking ahead to Friday’s data on U.S. nonfarm payrolls after the ADP jobs report fell short of expectations on Wednesday, adding to concerns over the economic recovery.

The Aussie was lower against the euro with EUR/AUD gaining 0.23%, to hit 1.2854.

Later in the day, the U.S. was to publish the weekly government report on initial jobless claims and official data on the trade balance.


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