Forex - AUD/USD near 3-year lows after Australian data

Published 08/05/2013, 02:51 AM
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Investing.com - The Australian dollar was steady against its U.S. counterpart on Monday, trading near three-year lows after the release of downbeat Australian retail sales data and as Friday's U.S. jobs data dampened expectations for a near-term end to the Federal Reserve's stimulus program.

AUD/USD hit 0.8848 during late Asian trade, a three-year low; the pair subsequently consolidated at 0.8904, easing up 0.01%.

The pair was likely to find support at 1.3263, the session low and resistance at 0.92072, the high of July 31.

The Aussie came under pressure after official data showed that retail sales in Australia were flat in June, disappointing expectations for a 0.4% rise, after a 0.2% increase the previous month.

Last week, comments by the Reserve Bank of Australia suggesting the possibility of more rate cuts sent the Australian dollar broadly lower.

In the U.S., official data on Friday showed that the economy added 162,000 jobs in July, less than the 184,000 increase forecast by economists. June's figure was revised down to 188,000 from a previously reported 195,000.

The unemployment rate ticked down to 7.4% from 7.6% in June, as more people left the labor force.

The Aussie was steady against the euro with EUR/AUD inching down 0.06%, to hit 1.4908.

Later in the day, the Institute for Supply Management was to release its nonmanufacturing index.


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