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Forex - AUD/USD steady amid Spain fears

Published 04/19/2012, 03:03 AM
AUD/USD
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AUD/NZD
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Investing.com - The Australian dollar was steady against its U.S. counterpart on Thursday, as investors remained cautious ahead of a highly anticipated Spanish government debt auction later in the day.

AUD/USD hit 1.0387 during late Asian trade, the daily high; the pair subsequently consolidated at 1.0361, inching up 0.04%.

The pair was likely to find support at 1.0310, the low of April 16 and resistance at 1.0417, the high of April 17.

Spain was due to auction up to EUR2.5 billion of government bonds later Thursday, after the yield on the country’s 10-year bonds rose above 6% earlier in the week, fuelling fears that the country may be the next in the euro zone to require a bailout.

The Aussie also came under pressure as official data showed that Japan posted a record trade deficit of JPY4.41 trillion in the year ended March 31.

Japan is Australia’s largest export partner.

Meanwhile, a report by the National Australia Bank showed that its index of business confidence fell to minus 1 in the first quarter from a reading of 1 the previous quarter.

Elsewhere, the Aussie was also steady against the New Zealand dollar with AUD/NZD edging 0.03% lower, to hit 1.2687.

Later in the day, the U.S. was to release official data on unemployment claims, followed by industry data on existing home sales and a report on manufacturing activity in the Philadelphia area.


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