Investing.com – The Australian dollar was trading below a record high against its U.S. counterpart on Tuesday, after Australia’s trade balance unexpectedly swung to a deficit in February for the first time in almost a year.
AUD/USD hit 1.0313 during late Asian trade, the pair’s lowest since last Thursday; the pair subsequently consolidated at 1.0332, shedding 0.28%.
The pair was likely to find support at 1.0266, last Wednesday’s low and resistance at 1.0416, Monday’s high and the all-time high.
The Australian Bureau of Statistics said exports fell and imports rose in February, sending the nation’s trade account to a surprise deficit of AUD205 million, from a revised AUD1.43 billion surplus in January. Analysts had expected a surplus of AUD1.15 billion in February.
Also Tuesday, the Reserve Bank of Australia held the overnight cash rate target at 4.75% for a fourth straight meeting.
In a statement following the decision, RBA Governor Glenn Stevens said employment growth “has moderated,” inflation is consistent with the central bank’s goal and the currency’s strength is helping ease price pressures. He added that the impact of Japan’s crisis on Asia’s economy was “expected to be limited”.
Meanwhile, the Aussie was fractionally higher against the yen, with AUD/JPY easing up 0.02% to hit 87.11.
Later in the day, the U.S. was to publish data on service sector growth while the Federal Reserve was to publish the minutes of its most recent policy setting meeting.
AUD/USD hit 1.0313 during late Asian trade, the pair’s lowest since last Thursday; the pair subsequently consolidated at 1.0332, shedding 0.28%.
The pair was likely to find support at 1.0266, last Wednesday’s low and resistance at 1.0416, Monday’s high and the all-time high.
The Australian Bureau of Statistics said exports fell and imports rose in February, sending the nation’s trade account to a surprise deficit of AUD205 million, from a revised AUD1.43 billion surplus in January. Analysts had expected a surplus of AUD1.15 billion in February.
Also Tuesday, the Reserve Bank of Australia held the overnight cash rate target at 4.75% for a fourth straight meeting.
In a statement following the decision, RBA Governor Glenn Stevens said employment growth “has moderated,” inflation is consistent with the central bank’s goal and the currency’s strength is helping ease price pressures. He added that the impact of Japan’s crisis on Asia’s economy was “expected to be limited”.
Meanwhile, the Aussie was fractionally higher against the yen, with AUD/JPY easing up 0.02% to hit 87.11.
Later in the day, the U.S. was to publish data on service sector growth while the Federal Reserve was to publish the minutes of its most recent policy setting meeting.