NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Forex - AUD/USD rises to fresh 4-1/2 month highs on strong data

Published 04/10/2014, 02:54 AM
Aussie hits fresh 4-1/2 month highs vs. greenback on data
AUD/USD
-
AUD/NZD
-

Investing.com - The Australian dollar rose to fresh four-and-a-half month highs against its U.S. counterpart on Thursday, supported by strong employment data from Australia, while demand for the greenback weakened after the minutes of the Federal Reserve's latest policy meeting.

AUD/USD hit 0.9440 during late Asian trade, the pair's highest since November 20; the pair subsequently consolidated at 0.9430, gaining 0.42%.

The pair was likely to find support at 0.9336, Wednesday's low and resistance at 0.9480, the high of November 8.

Official data showed that the number of employed people in Australia rose by 18,100 in March, exceeding expectatins for a 5,000 rise. The number of employed people in February was revised up to a 48,200 increase from a previously estimated 47,300 gain.

Australia's unemployment rate ticked down to 5.8% last month, from 6.1% in February, whose figure was revised up from a previously estimated 6.0%. Analysts had expected the unemployement rate to remain at 6.0% in March.

In a separate report, the Melbourne Institute said inflation expectations for the next 12 months ticked up to 2.4% in March, from 2.1% the previous month.

In addition, data showed that China's trade balance swung into a surplus of $7.7 billion last month, from a deficit of $23 billion in February. Analysts had expected the trade deficit to narrow to $0.9 billion in March.

China is Australia's biggest export partner.

Meanwhile, the greenback came under pressure after the Fed's March meeting minutes released on Wednesday showed that officials discussed whether to make a more explicit commitment to keeping short-term interest rates at record lows until inflation moves higher, but instead decided to wait.

The minutes also indicated growing concerns among officials over persistently low inflation.

Last month the U.S. central bank reduced the monthly pace of purchases by $10 billion, to $55 billion, and said it is likely to continue paring the program in "further measured steps."

The Aussie was higher against the New Zealand dollar, with AUD/NZD adding 0.24% to 1.0800.

Also Thursday, data showed that the New Zealand business manufacturing index rose to 58.4 in March, from a reading of 56.5 in February, whose figure was revised up from a previously estimated 56.2.

Later in the day, the U.S. Labor Department was to release its weekly report on initial jobless claims.

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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.