Forex - AUD/USD turns lower after weak Australian data

Published 11/03/2010, 09:10 AM
AUD/USD
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EUR/AUD
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Investing.com – The Australian dollar was down against its U.S. counterpart on Wednesday, falling to a daily low as significantly worse-than-expected Australian construction sector data dampened demand for the currency.

AUD/USD hit 0.9960 during European afternoon trade, a daily low; the pair subsequently consolidated at 0.9976, shedding 0.18%.

The pair was likely to find support at 0.9865, Tuesday’s low and short-term resistance at 1.0023, Tuesday’s high.

Earlier in the day, official data showed that Australian building approvals fell unexpectedly in September, hitting their lowest level in six months. In a report, the Bureau of Statistics said that building approvals fell by 6.6% in September after falling by a revised 4.8% in August. Analysts had expected building approvals to rise by 0.3% in September.

Also Wednesday, U.S. payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 43K in October, after falling by a revised 2K in September. Analysts had expected non-farm private sector employment to increase by 25K in October.

Markets were largely unchanged following the release of the report.

Meanwhile, the Aussie was down against the euro, with EUR/AUD gaining 0.14% to hit 1.4062.

Later Wednesday, the U.S. Federal Reserve was to make its November rate statement. The announcement was widely expected to unveil a fresh round of Treasury bond purchases designed to support the U.S. economic recovery.

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