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Forex - AUD/USD rises, markets focus on Spain

Published 09/27/2012, 04:03 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, supported by a surprise liquidity move by China, but market sentiment remained under pressure amid growing concerns over the handling of the debt crisis in Spain and Greece.

AUD/USD hit 1.0426 during European morning trade, the pair's highest since September 25; the pair subsequently consolidated at 1.0407, rising 0.35%.

The pair was likely to find support at 1.0329, Wednesday's low and a two-week low and resistance at 1.0458, the high of September 23.

The Aussie found support amid reports the People’s Bank of China injected a record CNY365 billion, or USD58 billion, this week into the Chinese banking system, easing liquidity conditions ahead of the end of the current quarter and before the Golden Week holidays next week.

China is Australia's biggest export partner.

Markets were jittery as Spain remained reluctant to request a bailout and trigger the European Central Bank's new bond-buying program.

Later in the day, Madrid was to present its draft budget for next year and announce structural reforms, while the results of bank stress tests are due on Friday.

Demonstrators clashed with police on the streets of Athens and Madrid this week in an upsurge of popular anger at new austerity measures being imposed on two of the euro zone's most vulnerable economies.

The Aussie was also higher against the New Zealand dollar with AUD/NZD adding 0.14%, to hit 1.2596.

Also Thursday, the National Bank of New Zealand said that its index of business confidence declined to 17.00 in September, from a reading of 19.50 the previous month.

Later in the day, the U.S. was to publish government data on durable goods orders, as well as a weekly report on unemployment claims and revised data on second quarter economic growth. The country was also to produce industry data on pending homes sales.


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