Forex - AUD/USD rises but upside seen to be limited

Published 07/01/2013, 02:55 AM
Updated 07/01/2013, 02:56 AM
AUD/USD
-
EUR/AUD
-
Investing.com - The Australian dollar rose against its U.S. counterpart on Monday, despite the release of mixed Chinese manufacturing data and as expectations for the Federal Reserve to soon scale back its stimulus program still supported the greenback.

AUD/USD hit 0.9207 during late Asian trade, the session high; the pair subsequently consolidated at 0.9196, climbing 0.60%.

The pair was likely to find support at 0.9114, Friday's low and a more than two year low and resistance at 0.9338, the high of June 27.

China’s official manufacturing purchasing managers’ index came in at 50.1 in June, above expectations for 50.0, following a reading of 50.8 in May.

Separately, China’s HSBC manufacturing PMI fell to a nine-month low of 48.2 in June, down from a preliminary reading of 48.3 and further below the 50 level that separates contraction form expansion.

China is Australia's biggest export partner.

Meanwhile, the greenback remained supported by expectations that the Fed will soon start tapering its USD85 billion-a-month bond buying program. Investors were awaiting Friday’s U.S. nonfarm payrolls data, with good data set to bolster the dollar further.

The Aussie was higher against the euro with EUR/AUD sliding 0.47%, to hit 1.4164.

Later in the day, the Institute of Supply Management was to produce a report on manufacturing activity.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.