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Forex - AUD/USD rises, but upside seen limited

Published 06/27/2013, 03:01 AM
Updated 06/27/2013, 03:05 AM
AUD/USD
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AUD/NZD
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Investing.com - The Australian dollar rose against its U.S. counterpart on Thursday, but gains were expected to remain limited amid growing speculation over a near-term end to the Federal Reserve's stimulus program.

AUD/USD hit 0.9339 during late Asian trade, the session high; the pair subsequently consolidated at 0.9315, rising 0.40%.

The pair was likely to find support at 0.9197, the low of June 25 and resistance at 0.9557, the high of June 19.

Demand for the greenback remained supported by expectations that the Fed will start to unwind its asset purchase program later this year, despite a downward revision to U.S. first quarter growth on Wednesday.

The Commerce Department said U.S. gross domestic product expanded at an annual rate of 1.8% in the three months to March, below an earlier estimate of 2.4% growth. Economists had expected the rate of growth to remain unchanged at 2.4%.

The Aussie was lower against the New Zealand dollar with AUD/NZD edging down 0.10%, to hit 1.1894.

Also Thursday, official data showed that New Zealand's trade surplus narrowed unexpectedly in May, falling to NZD71 million from a surplus of NZD174 million the previous month.

Analysts had expected the trade surplus to widen to NZD400 million last month.

A separate report showed that the ANZ business confidence index for New Zealand rose to 50.1 this month, from a reading of 41.8 in May.

Later in the day, the U.S. was to release the weekly government report on initial jobless claims and a report on pending home sales.


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