Forex - AUD/USD hits more than 2-year lows on Chinese data, Fed

Published 06/20/2013, 03:02 AM
Updated 06/20/2013, 03:04 AM
AUD/USD
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AUD/NZD
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Investing.com - The Australian dollar dropped to more than two-year lows against its U.S. counterpart on Thursday, hit by downbeat Chinese data while comments by Federal Reserve Chairman Ben Bernanke sent the greenback broadly higher.

AUD/USD hit 0.9228 during late Asian trade; the pair subsequently consolidated at 0.9226, declining 0.73%.

The pair was likely to find support at 0.9228 and resistance at 0.9313, the session high.

Data earlier showed that China’s HSBC preliminary manufacturing purchasing managers’ index fell to a nine month low of 48.3 in June from 49.2 in May as new orders fell, indicating that the slowdown in manufacturing is worsening.

China is Australia's biggest export partner.

Meanwhile, the greenback found support after Fed Chairman Ben Bernanke said the bank could begin slowing asset purchases by the end of 2013 and wind them down completely by the middle of 2014 if the economy picks up as the central bank expects.

The Aussie was fractionally higher against the New Zealand dollar with AUD/NZD edging up 0.08%, to hit 1.1782.

Also Thursday, official data showed that New Zealand's gross domestic product rose 0.3% in the first quarter, disappointing expectations for a 0.6% increase, after a 1.5% rise in the previous quarter.

Later in the day, the U.S. was to release the weekly government report on initial jobless claims, as well as data on existing home sales and the Philly Fed manufacturing index.


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