Forex - AUD/USD regains strength after weak jobs data

Published 03/07/2012, 11:02 PM
Updated 03/07/2012, 11:06 PM
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Investing.com - The Australian dollar rose against its U.S. counterpart on Thursday, wiping out earlier losses posted in wake of softer than expected jobs data.
 
In Asian trading on Thursday, AUD/USD hit 1.0591, up 0.06% and up from a low of 1.0535 and off a high of 1.0609.

The pair sought to test support at 1.0510, Wednesday's low, and resistance at 1.0691, Tuesday's high.

In Australia, the number of employed people fell by 15,400 in February, catching the markets off guard.

Market forecasts were expecting a gain of 5,000 jobs.

The news sent the Australian dollar falling although it later bounced back.

Meanwhile stronger-than-expected jobs data bolstered the greenback.

U.S. payroll processing firm ADP in the U.S. on Wednesday reported that non-farm private-sector employment rose by a seasonally adjusted 216,000 jobs in February, beating expectations for an increase of 205,000.

The previous month’s figure was revised up to a gain of 173,000 from a previously reported increase of 170,000.

Earlier during the week, the Reserve Bank of Australia said it was holding its benchmark rate unchanged at 4.25%.

The Australian dollar, meanwhile, was down against the euro and up against the yen, with EUR/AUD gaining 0.09% to 1.2436 and AUD/JPY up 0.24% at 86.03.

Later Thursday, the U.S. is to produce government data on initial jobless claims, while Australia will release trade balance figures.





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